April Production Down 0.7%, Consumption Down 0.2%, Investment Down 7.5%... Triple Decline in 26 Months (Update)

Industrial Activity Trends

[Asia Economy Sejong=Reporter Son Seon-hee] Last month, the economic recovery trend stalled as production, consumption, and investment all contracted. It is the first time in 26 months that all three items have declined simultaneously.

According to the 'April Industrial Activity Trends' released by Statistics Korea on the 31st, the overall industrial production index (seasonally adjusted, excluding agriculture, forestry, and fisheries) stood at 116.4 (2015=100) last month, down 0.7% from the previous month. After consecutive declines in January (-0.3%) and February (-0.3%), it rebounded in March (1.6%) but fell again in April.

The decline was led by reduced production in manufacturing (-3.1%), mining and manufacturing industries (-3.3%), and public administration (-4.3%).

The retail sales index (seasonally adjusted), which indicates consumption trends, was 119.7 (2015=100), down 0.2% from the previous month. This marked a decrease for two consecutive months following the previous month.

Facility investment also decreased by 7.5% compared to the previous month. The coincident index of economic indicators, which reflects the current economy, was 102.1, down 0.3 points from the previous month. The leading index of economic indicators, which predicts future economic trends, also fell by 0.3 points to 99.3.

Eo Un-seon, the Economic Trend Statistics Officer at Statistics Korea, said, "As production in mining and manufacturing industries adjusted, overall production turned downward, and domestic demand indicators such as retail sales and facility investment were somewhat sluggish," adding, "The economic recovery and improvement trend showed signs of stalling."

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