Last month, industrial production continued its negative trend for the third consecutive month due to a decline in automobile and electronic component production. Although consumption rebounded after three months, indicators reflecting the current economic situation fluctuated between decline and stagnation, failing to rebound for nine months.
According to the 'November 2024 Industrial Activity Trends' released by Statistics Korea on the 30th, total industrial production last month decreased by 0.4% compared to the previous month.
Total industrial production had increased by 1.1% in August, marking a shift to growth after four months, but then declined for three consecutive months in September (-0.4%), October (-0.2%), and November. The decrease was influenced by reduced production of finished vehicles such as large passenger cars and hybrid passenger cars due to automobile strikes.
By sector, production decreased across mining and manufacturing, services, public administration, and construction. Within mining and manufacturing, production increased in semiconductors (3.9%) but declined in automobiles (-5.4%) and electronic components (-4.7%).
In the service sector, production rose in information and communications (3.2%) but fell in finance and insurance (-2.9%) and water supply, sewage, and waste management (-5.7%).
Manufacturing inventory decreased by 0.8% compared to the previous month, and the average operating rate fell by 0.5 percentage points to 71.8%.
Consumption indicators rebounded. Retail sales, which reflect consumption trends, increased by 0.4% compared to the previous month. After declining for two consecutive months in September (-0.3%) and October (-0.8%), retail sales successfully rebounded after three months.
Sales decreased in non-durables such as food and beverages (-0.7%) and durables such as passenger cars (-0.1%), but increased in semi-durables such as clothing (4.1%).
By retail type, sales increased in specialty stores (0.7%) and non-store retailing (0.7%), but decreased in passenger car and fuel retail stores (-5.9%) and supermarkets and miscellaneous goods stores (-4.7%).
Facility investment increased by 0.1% in transportation equipment such as other transportation equipment but decreased by 2.0% in machinery such as special industrial machinery, resulting in an overall 1.6% decline compared to the previous month.
Domestic machinery orders decreased by 15.3% year-on-year, with orders falling in both public (-63.3%) and private (-10.8%) sectors. Construction orders (current) increased by 62.9% year-on-year, with growth in building construction such as housing (69.0%) and civil engineering such as power generation and telecommunications (40.6%).
The coincident index of economic indicators, which reflects the current economy, stood at 97.6, down 0.5 points from the previous month. The coincident index had declined for seven consecutive months, recorded stagnation last month, but failed to rebound and declined again. The leading index of economic indicators, which forecasts future economic conditions, rose by 0.1 points to 100.8 compared to the previous month.
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