November Consumption Down 1.8%, Declining for Three Consecutive Months... Production Slightly Rebounds (Update)

Statistics Korea, November Industrial Activity Trends

[Asia Economy Sejong=Reporter Kim Hyewon, Sejong=Reporter Lee Junhyung] November consumption continued its decline for the third consecutive month. Production, which had been falling for four months, slightly rebounded within a stable range after five months.

According to the industrial activity trends announced by Statistics Korea on the 29th, total industrial production (seasonally adjusted, excluding agriculture, forestry, and fisheries) in November increased by 0.1% compared to the previous month. Total industrial production, which had decreased for four consecutive months in July (-0.2%), August (-0.1%), September (-0.4%), and October (-1.7%), turned to an upward trend after five months.

By industry, production decreased in the service sector (-0.6%), but increased in manufacturing such as automobiles (9%) and machinery equipment (6.4%), resulting in a 0.4% rise in mining and manufacturing production. The semiconductor sector continued to experience a downturn (-11%).

Consumption decreased by 1.8% compared to the previous month due to reduced sales in cosmetics, clothing, and home appliances. This marks the third consecutive month of decline following September (-2.0%) and October (-0.2%). Statistics Korea explained that warmer-than-average weather led to reduced sales of winter clothing and decreased demand for heating appliances.

Facility investment increased by 1.0% compared to the previous month, rising in machinery such as special industrial machines (2.9%) despite a decrease in transportation equipment like ships (-4.5%). The coincident index of economic activity, which indicates the current economy, fell by 0.7 points from the previous month to 101.7. The leading index of economic activity, which predicts future economic conditions, dropped by 0.2 points to 99, marking a downward trend for five consecutive months.

Oh Woonseon, the Economic Trend Statistics Officer at Statistics Korea, analyzed, "Although overall production shifted to an increasing trend, the service sector showed a decline, and manufacturing production cannot be considered robust," adding, "The economy showed signs of weakening."

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