November Production Up 3.2%↑, Largest Increase in 1 Year 5 Months... Consumption Down 1.9%↓ (Update)

Statistics Korea Announces 'November Industrial Activity Trends'

Manufacturing and Service Industries Rise Together
Largest Increase Since June 2020 at 3.9%

Consumption Drops Most in 1 Year and 4 Months
Statistics Korea: "Impact of Base Effect Compared to Previous Month"

Daebul Industrial Complex panorama. (Photo by Asia Economy DB)

[Sejong=Asia Economy Reporter Moon Chaeseok] Last month, production in both manufacturing and service industries rose simultaneously, resulting in total industrial production increasing by more than 3% compared to the previous month. This is the largest increase in one year and five months since a 3.9% rise in June last year. However, consumption fell by nearly 2%, marking the largest decline in one year and four months. According to Statistics Korea, this is attributed to a base effect caused by strong consumption in the previous month.

According to the 'November Industrial Activity Trends' data released by Statistics Korea on the 30th, the total industrial production index (seasonally adjusted, excluding agriculture, forestry, and fisheries) was 114.4 (2015=100), up 3.2% from the previous month. This is the largest increase since June last year (3.9%). Total industrial production recorded two consecutive months of decline in July (-0.7%) and August (-0.1%), followed by a 1.1% increase in September. It decreased by 1.9% in October but rebounded last month. Manufacturing production increased by 5.3%, and service industry production rose by 2.0%. Construction and public administration also increased by 2.4% and 5.5%, respectively.

On the other hand, the retail sales index (seasonally adjusted), which reflects consumption trends, was 119.1 (2015=100), down 1.9% from the previous month. Despite the phased return to normal life (With Corona) implemented last month, this was the largest decline since July last year (-6.1%). Regarding this, Statistics Korea explained, "The base effect was significant due to the previous month recording the highest level of 121.4 since the statistics began."

Facility investment increased by 10.9%, and construction performance also rose by 2.4%. The coincident index of economic indicators, which reflects the current economy, rose by 0.4 points to 101.4, breaking the downward trend seen in September (-0.1 points) and October (-0.2 points). The leading index of economic indicators, which predicts future economic conditions, fell by 0.4 points to 101.3, continuing a decline for five consecutive months since July.

Oh Woonseon, Director of Economic Trend Statistics at Statistics Korea, said, "Overall production turned to an increase due to the favorable performance of manufacturing and service industries, and although retail sales decreased, facility investment and construction performance increased, improving compared to the previous month," adding, "The economy appears to be on a path to recovery."

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