Industrial output dips most in 14 months; inventories at record high
Published: 31 May. 2023, 11:52
Updated: 31 May. 2023, 11:53
Industrial output dropped 1.4 percent on month last month, snapping two consecutive months of gains, and marked the sharpest drop since a 1.5 percent fall in February last year, according to the data from Statistics Korea.
The output in the mining, manufacturing, gas and electricity industries also fell 1.2 percent on month in April due to the falling production of machinery and pharmaceutical products.
From a year earlier, the production of automobiles moved up 16.6 percent, while that of semiconductors, the backbone of Korea's economy, dropped 20.2 percent, according to the data.
The service output slid 0.3 percent on month in April, as losses in the retail and wholesale sector offset gains in the finance and insurance segment.
The inventory level in the manufacturing sector reached 130.4 percent, up 13.2 percentage points on month, reaching the highest level since the agency started compiling related data in 1985.
The rise in the inventory was led mostly by the semiconductor and petroleum sectors.
"The current economic trend is facing significant challenges," an official from the statistics agency said. "Overall, there are still significant uncertainties, largely dependent on the global recovery of the electronics and semiconductor sectors."
Retail sales, a gauge of private spending, decreased 2.3 percent on month in April amid higher inflation and borrowing costs.
Sales of semidurable goods, such as clothes, fell 6.3 percent on month in April, with those of non-durable items, including foodstuffs, losing 1.2 percent.
The demand for durable goods, covering telecommunication devices and computers, fell 1.7 percent over the period.
Facility investment, meanwhile, gained 0.9 percent.
The growth was mainly led by the increase in the import volume of aircraft, with the daily average reaching $20.8 million in April, rising sharply from $13.4 million tallied a month earlier.
"In April, the industrial output underwent a moderate adjustment after experiencing a recovery in the first quarter," the Ministry of Economy and Finance said in a separate report, noting the recovery continued except for some areas, including the semiconductor industry.
"The government aims to strengthen the recovery momentum by prioritizing the revitalization of exports, investment and domestic consumption while effectively managing risks in light of both positive and negative factors," it added.
BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]
with the Korea JoongAng Daily
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