July Consumption Down 0.3% for 5 Consecutive Months... Production and Investment Also Decline, 'Triple Decrease' (Update)

[Asia Economy Sejong=Reporter Kim Hyewon] Domestic consumption in July decreased by 0.3%, continuing a decline for five consecutive months. Production and investment in the same month also decreased by 0.1% and 3.2%, respectively.

According to the Statistics Korea's 'July Industrial Activity Trends' released on the 31st, the retail sales index (seasonally adjusted), which indicates consumption trends in July, stood at 117.9 (2015=100), down 0.3% from the previous month.

The consumption decline continued for the fifth month in a row following March (-0.7%), April (-0.3%), May (-0.2%), and June (-1.0%). This marks the first time since statistics began in 1995 that consumption has decreased for five consecutive months.

In addition to consumption, both production and investment also decreased, marking the first time in three months since April.

The total industrial production index (seasonally adjusted, excluding agriculture, forestry, and fisheries) in July was 117.9 (2015=100), down 0.1% from the previous month.

Total industrial production had decreased in April (-0.9%), then increased for two consecutive months in May (0.7%) and June (0.8%), but returned to a decline in July.

The decline was influenced by a 3.4% downturn in the semiconductor sector, causing manufacturing and other mining and manufacturing production to fall by 1.3%. On the other hand, service industry production rose by 0.3%, supported by strong performances in accommodation and food services (4.4%).

Facility investment decreased by 3.2% compared to the previous month, affected by reduced investment in transportation equipment such as aircraft (-6.9%) and machinery including special industrial machines (-2.1%).

The coincident index of economic indicators, which reflects the current economy, rose by 0.5 points to 101.8 compared to the previous month.

The leading index of economic indicators, which predicts future economic trends, fell by 0.3 points to 99.4.

Oh Woonseon, Director of Economic Trend Statistics at Statistics Korea, evaluated, "As mining and manufacturing production adjusted, total production returned to a declining trend," adding, "With retail sales and domestic demand also decreasing, the economic recovery and improvement trend has somewhat stalled."

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