Korea’s industrial output drops in October as semiconductor production slows

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Korea’s industrial output drops in October as semiconductor production slows

Published: 29 Nov. 2024, 10:17 Updated: 29 Nov. 2024, 16:09

Samsung Electronics's production line in the city of Pyeongtaek, Gyeonggi. [SAMSUNG ELECTRONICS]

Korea's industrial output fell from a month earlier in October on dwindling production in the semiconductor and other manufacturing sectors, data showed Friday.

Industrial production went down 0.3 percent last month, marking the second consecutive month of decline, according to the data compiled by Statistics Korea.

In on-year terms, however, industrial output went up 2.3 percent in October.

Retail sales, a gauge of private spending, also dropped 0.4 percent from the previous month amid signs of weaker economic growth, the data showed.

Facility investment saw a sharper decline in October, tumbling 5.8 percent from the previous month, largely due to a slump in construction activity.

This marks the first simultaneous decline across all three indicators since May.

“While manufacturing and service sector production remained relatively steady, retail sales showed a decline,” said Gong Mi-sook, an official from Statistics Korea.

“Facility investment is performing relatively well, but the construction sector is facing significant challenges.”

The decline in the output came as production in the construction sector tumbled 4 percent on month and that in public administration dropped 3.8 percent.

Output in the construction sector has declined for six consecutive months as of October in its longest losing streak since 2008.

In contrast, the service sector posted a 0.3 percent on-month increase supported by a strong performance in the financial and insurance segments.

In on-year terms, overall industrial output went up 2.3 percent in October.

Retail sales showed mixed performance. Sales of home appliances and other durable goods fell 5.8 percent from a month earlier in October, offsetting a 4.1 percent increase in semidurable goods such as clothing.

In on-year terms, retail sales fell 0.8 percent.

Facility investment weakened primarily due to downturn in construction-related investments. Construction orders plunged 11.9 percent from a year earlier in October, the data showed.

The Finance Ministry said the government plans to make every effort to boost economic vitality amid persistent challenges and uncertainties due to factors such as the incoming U.S. administration.

Yonhap