Double Increase in Production and Consumption... "Expansion of Economic Recovery Trend" (Update)

Service Industry Production Up 1.2%, Retail Sales Up 2.3% Indicating Economic Recovery
Industrial Production Down 0.8% Due to Vehicle Semiconductor Parts Supply Issues…Automobiles Down 4.8%
All-Industry Production Index Hits Record High of 112.6 Since January 2000 Statistics

[Sejong=Asia Economy Reporter Moon Chaeseok] Last month, service sector production increased, leading to a consecutive two-month rise in overall industrial production. In particular, consumption (retail sales) grew by 2.3% compared to the previous month, marking the highest growth rate in seven months since August last year. With improvements in key indicators such as production and consumption, the economic recovery trend appears to be expanding.

According to the 'Industrial Activity Trends' released by Statistics Korea on the 30th, industrial production rose by 0.8% last month. After shifting from -0.5% in January to 2.1% in February, the increase continued for two consecutive months. Service sector production increased by 1.2%, following a 1.1% rise the previous month, marking two consecutive months of growth. The increase was the largest since June last year, when it was 1.8%. Manufacturing production decreased by 0.8%, largely due to the automotive sector remaining at -4.8% amid supply issues with vehicle semiconductor components.

Retail sales, which indicate consumption trends, also rose by 2.3%, reversing the previous month's 0.8% decline. This was the largest increase since August last year (3.0%). The coincident composite index, which reflects the current economy, rose by 0.5 points to 100.2, while the leading composite index, which predicts future economic conditions, increased by 0.2 points to 103.1.

Eo Unseon, Director of Economic Trend Statistics at Statistics Korea, explained, "Overall, manufacturing production experienced an adjustment, but the strong performance in service sector production led to a two-month consecutive increase in the total industrial production index." He added, "Above all, retail sales turned to growth, and both the coincident and leading composite indices showed positive trends, indicating that key indicators improved compared to the previous month, reflecting an expanded economic recovery."

Facility investment remained flat at 0.0% compared to the previous month, while construction investment increased by 0.4%.

Last month, the total industrial production index (seasonally adjusted, excluding agriculture, forestry, and fisheries) reached 112.6, the highest level since statistics began in January 2000.

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