Semiconductor Rebound Drives August Production Up 2.2%... Largest Increase in 30 Months (Update)

Domestic industrial production in August returned to an upward trend, supported by a rebound in the semiconductor industry. Meanwhile, consumption continued to decline for the second consecutive month.

According to the Industrial Activity Trends released by Statistics Korea on the 4th, total industrial production in August increased by 2.2% compared to the previous month. This is the largest increase in 30 months since February 2021 (2.3%).

With semiconductor production rising by 13.4%, manufacturing production increased by 5.5%. This is the largest rise in 38 months since June 2020 (6.4%). Machinery and equipment also rose by 9.7%, and the service sector showed growth in arts, sports, and leisure (6.2%), as well as accommodation and food services (3.0%).

Industrial production decreased in April (-1.3%), slightly increased in May (0.7%), remained flat in June (0.0%), and then declined last month.

Facility investment rose by 3.6% compared to the previous month, driven by increased investment in transportation equipment (13.1%). However, compared to the same month last year, investment decreased by 14.9%, as machinery such as special industrial machinery (-17.3%) and transportation equipment like automobiles (-7.3%) both saw reduced investment.

Retail sales, an indicator of consumption, fell by 0.3%. Sales increased in non-durable goods such as food (0.2%), but decreased in durable goods like passenger cars (-1.1%) and semi-durable goods such as clothing (-0.6%).

Retail sales have been fluctuating. After a decline in January this year (-1.8%), they rose in February (5.2%) and March (0.1%). They turned downward again in April (-2.6%), then increased for two consecutive months in May (0.6%) and June (0.9%), before declining in July (-3.3%).

The coincident composite index, which reflects the current economic situation, fell by 0.2 points compared to the previous month. The leading composite index, which forecasts future economic conditions, remained flat.

On the 27th, cargo containers are stacked at Pyeongtaek Port as seen from the air. [Aerial shooting cooperation = Seoul Metropolitan Police Agency Aviation Unit, Pilots: Lieutenant Shin Seung-ho - Lieutenant Park Ji-hwan, Crew: Lieutenant Park Sang-jin] Photo by Kang Jin-hyung aymsdream@

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