June Production, Consumption, and Investment Triple Increase for Two Consecutive Months (Update)

Last month, industrial production, consumption, and investment all increased, showing a 'triple increase' for two consecutive months. This is the first time in 5 years and 4 months since February 2018 that a triple increase has appeared.

According to the 'June Industrial Activity Trends' released by Statistics Korea on the 28th, total industrial production (seasonally adjusted, excluding agriculture, forestry, and fisheries) in June decreased in manufacturing but increased in services, resulting in a 0.1% increase compared to the previous month.

Manufacturing production decreased by 1.0% month-on-month as production increased in semiconductors (3.6%) but decreased in petroleum refining (-14.6%). The decline in automobile production (12.9%) had a significant impact. Year-on-year, production decreased by 5.6% due to declines in semiconductors (-15.9%) and chemical products (-10.4%), despite increases in automobiles (10.8%). Kim Bo-kyung, Director of Economic Trend Statistics at Statistics Korea, explained the increase in semiconductor production by stating, "Production increased as shipments and exports of high-performance DRAMs rose."

Retail sales increased by 1.0% month-on-month. Sales decreased in non-durable goods such as food and beverages (-0.3%) and semi-durable goods such as shoes and bags (-0.1%), while sales of durable goods such as passenger cars increased (4.7%). Year-on-year, sales decreased in semi-durable goods such as clothing (-2.1%) and non-durable goods such as cosmetics (-0.6%). However, sales of durable goods such as passenger cars increased by 8.2%, resulting in a 1.4% increase overall.

Facility investment increased by 0.2% month-on-month due to increased investment in transportation equipment such as passenger cars (1.6%). However, investment in machinery such as general industrial machines decreased (-0.2%).

The coincident composite index, which reflects the current economic situation, fell by 0.2 points compared to the previous month. On the other hand, the leading composite index, which forecasts future economic conditions, rose by 0.3 points month-on-month as the inventory cycle indicator and export-import price ratio increased despite a decrease in the long- and short-term interest rate spread.

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