Gwangju's Key Industries Shaken... Decline in Manufacturing Output Due to Poor Automobile Performance↓

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] In July, the production of the light and medium industries in the Gwangju area decreased compared to last year due to sluggishness in the automobile market and other sectors.

According to the 'Industrial Activity Trends' released on the 31st by the Honam Regional Statistics Office, the light and medium industry production index in the Gwangju area was 100 (2015=100), down 8.1% compared to the same month last year.

Unlike the Gross Domestic Product (GDP), which is compiled quarterly, production trends are indicators that can quickly diagnose the current economic condition. They can be broadly divided into production and consumption.

The light and medium industry production index includes 485 items, such as automobiles, which are the region's main industries.

Looking at the major sectors of this index, automobiles (-12.6%), tobacco (-97.1%), and beverages (-20.3%) showed sluggish performance.

On the other hand, electronic components (13%), electrical equipment (4.3%), and metal processing (19.1%) recorded growth.

Shipments of light and medium industries increased by 3%, and inventory rose by 13% based on the same criteria.

In summary, despite the decrease in production, unsold inventory assets piled up in warehouses.

The large retail store sales index rose 24.3% to 91.2 due to the base effect and business recovery. Around this time last year, when the spread of COVID-19 was severe, traditional offline channels suffered serious losses. Because the comparison is based on the period when sales sharply declined, the 'positive signal' may appear stronger.

Specifically, department store sales (35.8%) recovered faster than large discount stores (13.8%). Well-selling products were mainly nondurable goods used for less than one year, such as shoes, bags, clothing, and home appliances (durable goods).

The construction order amount, which can gauge construction market trends, sharply dropped 78.3% to 28.5 billion KRW. While the public sector surged 956.4% due to increased orders from local governments, the private sector shrank 88.7% due to declines in real estate and construction industries.

In the Jeonnam area, light and medium industry production increased by 5.6%, and the large retail store sales index rose by 3.2% compared to the same month last year, while construction order amounts fell by 62.1%.

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