Last Year, Total Industrial Production Increased by 0.4%... Lowest Since Statistics Compilation (Comprehensive)

Statistics Korea Announces Industrial Activity Trends for December 2019 and Annual Summary

[Sejong=Asia Economy Reporters Kim Hyunjung, Joo Sangdon] Last year, the total industry production index showed the lowest growth rate since the statistics began in 2000.

On the 31st, Statistics Korea announced the 'December 2019 and Annual Industrial Activity Trends' report containing this information.

The total industry production index increased by 0.4% compared to the previous year, driven by growth in the service sector. This is the lowest growth rate since Statistics Korea started compiling and publishing related statistics in 2000. The average operating rate of manufacturing was 72.9%, marking the lowest level since the 1998 IMF financial crisis (67.6%).

The retail sales index rose by 2.4% year-on-year, with increases in non-durable goods such as cosmetics (3.3%), durable goods such as passenger cars (1.8%), and semi-durable goods such as entertainment, hobbies, and sporting goods (0.6%).

Facility investment decreased by 7.6% year-on-year, as investments in machinery such as special industrial machinery (-8.8%) and transportation equipment such as ships (-4.1%) both declined. This is the largest drop since 2009 (-9.6%). Construction output also fell by 6.7% year-on-year due to poor performance in building construction.

In December last year, total industry production increased by 1.4% compared to the previous month, as production in manufacturing and other sectors rose despite a decline in the service sector. Retail sales increased by 0.3%, and facility investment rose by 10.9%, marking a 'triple increase' for two consecutive months following November.

Regarding the industrial trends for January, to be announced next month, Statistics Korea expects there will be an impact from the globally spreading novel coronavirus infection (Wuhan pneumonia).

An Hyeongjun, Director of Economic Trend Statistics at Statistics Korea, explained, "In past similar cases such as the 2003 SARS (Severe Acute Respiratory Syndrome), the industrial trends in the second quarter, especially in the service sector, were affected." He added, "Among these, wholesale and retail, arts and sports, leisure, and food and accommodation industries were most impacted." He further stated, "At that time, manufacturing was not affected, but how the novel coronavirus will additionally impact the industry will be confirmed later by observing the development and severity."

This content was produced with the assistance of AI translation services.