Industrial output increases for second month in June

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Industrial output increases for second month in June

Published: 28 Jul. 2023, 13:54 Updated: 28 Jul. 2023, 15:36

A Statistics Korea official briefs on Korea's monthly industrial output report at the government complex in Sejong on Friday. [YONHAP]

Industrial output, private spending and investment in Korea rose for a second consecutive month in June, Statistics Korea data showed Friday.

The country's industrial output increased 0.1 percent in June from a month earlier but the June growth slowed from May's 1.1 percent on-month rise.

Output in the mining, manufacturing, gas and electricity industries decreased 1 percent due to a slump in the automobile industry, which fell 12.9 percent.

The decrease, however, was limited due to increased output in the semiconductor industry, the backbone of Korea's economy, which increased 3.6 percent, the data showed.

The inventory of semiconductor products moved down 12.3 percent on month in June, with their shipments advancing 41.1 percent, the data also showed.

In June, exports of chips reached $8.9 billion, the highest monthly figure so far for 2023.

The service output added 0.5 percent on month in June on the back of the finance and insurance sector, although the health care and social welfare sector saw its output fall 1.4 percent.

Container ships are archored at a port in Busan on Tuesday. [YONHAP]

Retail sales, a gauge of private spending, increased 1 percent over the period, as spending on durable goods, including eco-friendly automobiles, increased, with the segment rising 4.7 percent.

Facility investment also climbed 0.2 percent on gains in the automobile sector, according to the data.

The latest data "has reaffirmed the recovery trend in the GDP during the second quarter announced this week," First Vice Finance Minister Bang Ki-sun said during a meeting with related ministries.

Earlier this week, the Bank of Korea said Korea's real gross domestic product — a key measure of economic growth — increased 0.6 percent on quarter in the April-June period, accelerating from a 0.3 percent expansion in the first quarter.

"Conditions for the real economy here and abroad remain challenging. Downward risks recently decreased to some extent, but uncertainties still linger," the Ministry of Economy and Finance said in a statement.

The Finance Ministry added that a sound job market, improved public and corporate sentiment and cooling inflation are positive factors, but uncertainties in semiconductors, construction and household debt are risks weighing down the economy.

The country's consumer price growth slowed for the fifth straight month in June, advancing 2.7 percent and falling below 3 percent for the first time in 21 months.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]