National Data Agency Releases "September Industrial Activity Trends"
Coincident and Leading Indexes Show Upward Trend
Last month, retail sales, which reflect goods consumption, declined by 0.1%, marking a negative trend for the second consecutive month. Thanks to strong performance in the semiconductor sector, total industrial production rebounded after two months, increasing by 1.0%. Facility investment also surged by 12.7%, the largest increase in seven months since February.
According to the "Industrial Activity Trends for September 2025" released by the National Data Agency on the 31st, retail sales last month decreased by 0.1% compared to the previous month. Although sales of durable goods such as communication devices and computers increased by 3.9%, sales of semi-durable goods like clothing, shoes, and bags fell by 5.7%, and sales of non-durable goods such as vehicle fuel also decreased by 0.1%.
This marks the second consecutive month of declining retail sales, following a 2.4% drop in the previous month. While the decline was less severe than before, and there were expectations for improved consumption ahead of the Chuseok holiday this month, a clear rebound did not materialize. However, on a quarterly basis, retail sales increased by 1.5% compared to the previous quarter, attributed to the effect of livelihood recovery consumption coupons.
Total industrial production rose by 1.0%. After a one-time drop of 0.3% in the previous month, production rebounded last month. Mining and manufacturing output fell by 1.2%, as increases in semiconductors (19.6%) were offset by declines in automobiles (-18.3%) and machinery and equipment (-6.9%). Construction production increased by 11.4%.
Focusing solely on manufacturing within the mining and manufacturing sector, production decreased by 1.1%. Shipments in manufacturing dropped by 2.7%, while inventories rose by 2.2%. The inventory-to-shipment ratio in manufacturing increased by 5.1 percentage points to 105.8%. The manufacturing production capacity index rose by 0.7%, but the operation rate index decreased by 1.6%.
Production in the service sector increased by 1.8%, with gains in wholesale and retail (5.8%) and finance and insurance (2.3%) offsetting declines in arts, sports, and leisure (-8.4%). In wholesale and retail, the increase was particularly notable in wholesale (8.2%), driven by the launch of new iPhone models. Accommodation and food service (-0.9%) declined, mainly due to decreases in restaurant and bar businesses.
Facility investment increased by 12.7%, with growth in machinery such as semiconductor manufacturing equipment (9.9%) and in transportation equipment, including ships and aircraft (19.5%). This is the largest increase in seven months since February (21.3%).
Construction completed increased by 11.4%, with both building construction (14.8%) and civil engineering (2.9%) showing higher performance. After declines in July (-0.9%) and August (-5.3%), the sector rebounded last month. The 11.4% increase is the highest growth rate in 20 months since January last year (21.8%), influenced by performance at semiconductor-related construction sites.
The coincident composite index, which reflects the current economic trend, rose by 0.2 points to 99.4. The leading composite index, which forecasts future economic trends, also increased by 0.1 points to 102.1.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
