Industrial output slump continues in July on weak chip, car production

Economy

Industrial output slump continues in July on weak chip, car production

Published: 30 Aug. 2024, 14:29

SHIN HA-NEE
shin.hanee@joongang.co.kr

A semiconductor wafer displayed at Samsung Electronics' showroom in western Seoul [NEWS1]

Korea’s industrial output slumped for the third month in a row in July, driven by a contraction in semiconductor and automobile production, data showed Friday.

Retail sales, a measure of private spending, dipped following a brief uptick in the previous month, while facility investment surged steeply.

Industrial output decreased 0.4 percent in July compared to a month earlier, according to data compiled by Statistics Korea. The latest decline came after a 0.1 percent decrease in June and a 0.8 percent drop in May.

Compared to a year earlier, however, industrial output increased 2.7 percent in July, the data showed.

"While industrial output has decreased for three consecutive months, it has posted growth compared to a year earlier, indicating that the industrial sector is in stable condition," said Kong Mi-sook, a senior official at Statistics Korea.

Output in the mining, manufacturing, gas and electricity industries fell 3.6 percent on month in July, primarily due to an 8 percent decline in chip production and a 14.4 percent drop in automobile production.

The local production of recreational vehicles and midsized sedans lost ground, leading to an overall decrease in the output of the car segment, the agency said.

The output in the service industries, meanwhile, added 0.7 percent on month in July, as gains from the telecommunication and travel industries offset losses in the financial sector.

Retail sales fell 1.9 percent on month in July, mainly due to the declining sales of automobiles, gasoline and semidurables, following a 1 percent uptick in June. Compared to a year earlier, sales dropped 2.1 percent.

Facility investment, on the other hand, increased 10.1 percent on-month in July, bolstered by the transportation sector, which jumped 50.5 percent, the data added.

Investment in the machinery industry, however, decreased 1.6 percent over the period.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]