September Production, Consumption, and Investment All Decline... Production Falls for Third Consecutive Month (Update)

[Asia Economy Sejong=Reporter Kim Hyewon] Production, consumption, and investment all declined simultaneously in September. This is the first time in two months since July that production, consumption, and investment have decreased together.

According to the "September Industrial Activity Trends" released by Statistics Korea on the 31st, the total industrial production index (seasonally adjusted, excluding agriculture, forestry, and fisheries) last month was 117.0 (2015=100), down 0.6% from the previous month. Total industrial production decreased for three consecutive months following July (-0.2%) and August (-0.1%).

By industry, production in the manufacturing and mining sectors decreased by 1.8%. Statistics Korea analyzed that this was due to the suspension of operations at major steel mills and other factories caused by Typhoon Hinnamnor in early September. Service sector production decreased by 0.3%, mainly in wholesale and retail trade.

The retail sales index (seasonally adjusted), which indicates consumption trends, was 120.8 (2015=100), down 1.8%. Consumption had declined for five consecutive months from March (-0.7%) to July (-0.4%), then saw a surprising rebound in August, but returned to a downward trend after just one month. Sales of durable goods such as passenger cars increased by 5.8%, but sales of non-durable goods such as food and beverages (-5%) and semi-durable goods such as clothing (-3.7%) decreased. Statistics Korea explained, "Compared to the previous month, early preparations for Chuseok, increased outdoor activities and dining out led to a decrease in demand for food ingredients, and warmer-than-average weather reduced sales of transitional season clothing."

Investment decreased by 2.4% from the previous month, influenced by a 6.6% decline in machinery investment, including semiconductor manufacturing equipment.

The coincident index, which reflects the current economy, rose 0.1 points from the previous month to 102.4. The leading index, which predicts future economic conditions, fell 0.1 points to 99.2.

Oh Woonseon, Director of Economic Trend Statistics at Statistics Korea, analyzed, "Mining and manufacturing production was sluggish, and domestic demand including service production, retail sales, and facility investment also adjusted, resulting in decreases in both production and expenditure," adding, "The economic recovery or improvement trend showed some weakening."

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