Seoul Consumption Drops 7.8%... Manufacturing Production Down 14.5% in 3Q

[Asia Economy Reporter Kwangho Lee] Due to the COVID-19 pandemic, Seoul's manufacturing production sharply declined in the third quarter. While domestic consumption increased during the same period, consumption in the Seoul area decreased.

According to the '2020 Q3 Regional Economic Trends' released by Statistics Korea on the 17th, manufacturing production in Seoul in the third quarter fell by 14.5% compared to the third quarter of the previous year.

This was due to decreases in key industries such as apparel, metal processed products, and other transportation equipment.

During the same period, manufacturing production in Daegu and Gyeongnam also declined by 10.4% and 6.6%, respectively.

On the other hand, Gwangju (11.9%), Gyeonggi (10.2%), and Incheon (5.6%) saw increases due to higher production of automobiles, semiconductors, and pharmaceuticals.

Among the 17 cities and provinces nationwide, manufacturing production decreased in 13 regions, resulting in a nationwide manufacturing production increase of only 0.9%.

Consumption (retail sales) in the third quarter rose by 1.9% compared to a year earlier, driven by increased sales in non-store retail, passenger cars, and fuel retail outlets.

However, Jeju (-30.4%), Incheon (-9.4%), and Seoul (-7.8%) experienced declines due to reduced sales in duty-free shops and specialty retail stores. Statistics Korea explained that the sharp drop in duty-free sales was caused by a decrease in foreign tourists due to COVID-19.

Construction orders increased by 36.2% compared to a year earlier, driven by higher orders for housing, machinery installation, and factories/warehouses.

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