April Consumption and Investment Increase... Production Turns Down Due to Semiconductor Decline (Update)

[Sejong=Asia Economy Reporter Kim Hyunjung] Last month, consumption and investment both increased, supporting the economic recovery, but production contracted compared to the previous month due to the impact of decreased semiconductor production.

According to the 'April Industrial Activity Trends' released by Statistics Korea on the 31st, total industrial production last month decreased by 1.1% compared to the previous month. The recovery trend that continued in February (2.0%) and March (0.9%) was interrupted, turning into a decline.

Production increased in machinery and equipment (5.3%), but decreased in semiconductors (-10.9%) and rubber and plastics (-4.0%), causing manufacturing production to decline by 1.6%. Service industry production rose by 0.4% from the previous month, influenced by increased production in wholesale and retail trade (0.8%) and accommodation and food services (3.1%), despite a decline in transportation and storage (-2.2%).

Consumption (retail sales) increased by 2.3% compared to the previous month, maintaining the growth rate seen in March (2.3%). This was due to increased sales of non-durable goods such as cosmetics (2.4%), semi-durable goods such as clothing (4.3%), and durable goods such as communication devices and computers (0.7%).

Facility investment rose by 3.5% compared to the previous month, with increased investment in machinery such as special industrial machinery (3.0%) and transportation equipment such as aircraft (5.0%). Construction performance decreased by 0.8% compared to the previous month, as building construction (1.7%) increased but civil engineering construction (-7.2%) declined.

The coincident composite index cyclical component rose by 1.1 points from the previous month due to increases in non-agricultural employment and import value, while the leading composite index cyclical component rose by 0.4 points from the previous month, despite a decrease in construction orders, supported by increases in economic sentiment index and inventory circulation indicators.

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