S. Korean industrial output continues to fall in July

South Korea’s industrial output fell for the third consecutive month in July, driven by lower production in key sectors such as semiconductors and automobiles. The decline was also influenced by the ongoing slump in the real estate market.

South Korea’s industrial production index, excluding agriculture, livestock, and fisheries, dropped by 0.4 per cent in July, following decreases of 0.1 per cent in June, and 0.8 per cent in May.

Manufacturing output dropped by 3.8 per cent in July, reversing the 0.7 per cent growth seen in June. Semiconductor production retreated by 8.0 per cent, while output for cars and electronic products plunged in double digits.

The ratio of inventory to shipment in the manufacturing industry increased by 9.7 percentage points to 114.6 per cent in July. Manufacturers’ average capacity ratio declined by 2.4 percentage points to 71.4 per cent.

The construction industry also experienced a decline, with output falling by 1.7 per cent in July. This marks the third consecutive month of decline amid concerns about a property market slowdown.

In contrast, the public administration sector saw a rebound, with output growing by 6.0 per cent in July. The service industry also continued to expand, with a 0.7 per cent increase in output.

Attribution: Statistics Korea report

Subediting: M. S. Salama