Gwangju and Jeonnam See Simultaneous Declines in Consumption and Construction Orders in July

Gwangju Retail Sales Down 9.4%, Jeonnam Down 9.8%
Construction Orders Plunge: Gwangju -36.4%, Jeonnam -54.2%
Mixed Trends in Manufacturing Output: Gwangju Up, Jeonnam Down

As sluggish domestic demand and a prolonged downturn in the construction industry continue, consumption and construction order volumes in the Gwangju and Jeonnam regions are steadily declining.

On the morning of the 25th, about a month after the distribution of livelihood recovery consumption coupons, Yangdong Market in Seo-gu, Gwangju, was bustling with customers. Photo by Min Chanki

According to the “July Gwangju and Jeonnam Industrial Activity Trends” released by the Honam Regional Statistics Office on August 29, the retail sales index for large retailers in Gwangju last month was 85.8, down 9.4% from the same month last year (94.7). By sector, department store sales fell by 8.1%, while large discount store sales dropped by 11.0%.

By product category, sales of recreational, hobby, and sporting goods increased by 87.6%, but cosmetics (-17.0%), clothing (-13.3%), and food and beverages (-7.3%) all declined. In Jeonnam, the retail sales index for large retailers was 81.0, a decrease of 9.8% compared to the same month last year (89.8). Sales of shoes and bags (up 5.6%) and recreational, hobby, and sporting goods (up 2.6%) increased, but sales of clothing (-27.7%), home appliances (-18.6%), and food and beverages (-5.0%) decreased. The decline in consumption in Gwangju and Jeonnam has continued since February.

Construction order volumes also decreased. In July, construction orders in Gwangju amounted to 143.5 billion won, a 36.4% decrease from the same month last year. While public sector orders rose by 347.0%, private sector orders fell by 37.4% due to declines in real estate brokerage, machinery, and equipment. In Jeonnam, construction orders totaled 149.1 billion won, down 54.2%. Public sector orders dropped by 76.9%, but private sector orders increased by 31.3%. In Jeonnam, civil engineering orders declined by 72.8% due to reduced road, bridge, and land development projects, but building construction orders increased by 126.0% thanks to growth in housing and office/store projects.

The mining and manufacturing production index in Gwangju was 130.0, up 9.0% from the same month last year. Production of electrical equipment, tobacco, and automobiles increased, while production of machinery, rubber and plastics, and fabricated metal products decreased. In Jeonnam, the mining and manufacturing production index was 106.0, down 1.1%. Primary metals, pharmaceuticals, and automobiles saw increases, but production of chemical products, electricity and gas, and other transportation equipment declined.