Industrial output rises for first time in four months in August

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Industrial output rises for first time in four months in August

Published: 30 Sep. 2024, 11:01

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

An automotive semiconductor is displayed at the headquarters of Telechips, a chip designer, located in Seongnam, Gyeonggi, on Jan. 16. [NEWS1]

Korea's industrial output saw a monthly upturn for the first time in four months in August, driven by the growth in auto and chip production, data showed Monday.

Retail sales, a gauge of private spending, also rose by the most in 18 months in August, but facility investment ended two months of on-month growth and fell markedly, according to the data compiled by Statistics Korea.

Industrial output advanced 1.2 percent on month in August, the first increase since April.

The figure fell 0.8 percent in May from April's 1.4 percent increase and inched down 0.1 percent in June before falling 0.6 percent in July.

August's growth came as the production in the overall mining and manufacturing sector rose 4.1 percent, the largest gain since August 2023, as chip production advanced 6 percent and the output of automobiles jumped 22.7 percent.

The output in the service sector went up 0.2 percent, the third consecutive monthly rise.

"The manufacturing industry has been in good shape, led by the chip sector amid the industry upcycle, and the service sector has also shown solid growth recently," an agency official said.

Sales of durable goods, such as vehicles, rose 1.2 percent, and foodstuff and other nondurable goods also went up 2.7 percent in August, partly driven by the spending growth ahead of the Chuseok holiday season.

However, sales of semidurables such as shoes and bags, fell 0.9 percent.

On an on-year basis, retail sales shed 1.3 percent, the sixth straight monthly fall.

Facility investment tumbled 5.4 percent on year in August, ending its two-month winning streak, due mainly to the falling investment in aircraft and other transportation equipment.

In July, facility investment jumped 10.2 percent, following a 3.5 percent increase the previous month, the data showed.

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