Consumption Shrinks Again Due to COVID-19... Industrial Production Up 0.7% in November (Comprehensive)

Statistics Korea to Release 'November 2020 Industrial Activity Trends' on the 30th

[Asia Economy Reporters Kim Hyunjung and Jang Sehee] Due to the spread of the novel coronavirus infection (COVID-19), consumption continued to decline for two consecutive months following October. However, industrial production increased from the previous month's 0% range and returned to positive growth.

According to the "November 2020 Industrial Activity Trends" released by Statistics Korea on the 30th, retail sales last month decreased by 0.9% compared to the previous month. Non-durable goods such as food and beverages increased by 1.3% compared to the previous month, while semi-durable goods such as clothing and durable goods such as passenger cars decreased by 6.9% and 0.4%, respectively.

Last month, total industrial production increased by 0.7% compared to the previous month but decreased by 0.6% compared to the same month last year. Growth continued in semiconductors (7.2%) and electronic components such as smartphones (7.4%).

Service industry production increased by 0.7%. Although sectors such as accommodation and restaurants (-2.7%) still showed declines, finance and insurance rose by 4.6%. In this regard, Statistics Korea stated, "The increase in production was influenced by the finance and real estate sectors," adding, "In particular, stock trading had a significant impact."

Construction performance rebounded by increasing 2.1% during the same period compared to October. Civil engineering decreased by 4.0%, but construction work increased by 4.6%. Facility investment decreased due to reduced investment in transportation equipment such as ships (-3.7%), but investment in machinery such as special industrial machines increased by 6.3%, resulting in a 3.6% increase compared to the previous month.

Meanwhile, the coincident index of economic activity, which indicates the current economic condition, and the leading index of economic activity, which can predict future economic trends, rose by 0.5 points and 0.7 points, respectively.

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