Semiconductor Production in March Up 35.1%... Largest Increase in 14 Years 2 Months Due to 'Base Effect' (Update)

Last month, semiconductor production increased by more than 35% compared to the previous month. This is the largest increase in 14 years and 2 months.

On the 28th, Statistics Korea released the March Industrial Activity Trends report containing this information.

According to the report, overall industrial production increased by 1.6% month-on-month, despite a decline in construction output, due to increases in mining and manufacturing, public administration, and service sectors. Compared to the same month last year, it rose by 2.2%.

Mining and manufacturing production decreased in areas such as telecommunications and broadcasting equipment (-31.5%), but increased in semiconductors (35.1%) and automobiles (6.5%), resulting in a 5.1% month-on-month increase. However, compared to the same month last year, production decreased by 7.6% due to declines in semiconductors (-26.8%) and electronic components (-30.4%), despite increases in automobiles (26.8%).

Kim Bo-kyung, Director of Economic Trend Statistics at Statistics Korea, explained, "The increase in semiconductor production compared to the previous month appears to be a temporary factor due to a base effect from recent declines and contract schedules. Samsung Electronics has announced production cuts, and since the quarterly trend is still downward, the overall trend should be viewed as declining."

Service sector production decreased in information and communications (-2.0%) but increased in finance and insurance (1.8%) and real estate (3.1%), resulting in a 0.2% month-on-month increase. Compared to the same month last year, production decreased in information and communications (-4.4%) but increased in finance and insurance (11.5%) and transportation and warehousing (18.2%), leading to a 6.2% increase.

Retail sales declined in semi-durable goods such as clothing (-1.1%) but increased in non-durable goods such as vehicle fuel (0.7%) and durable goods such as home appliances (0.4%), resulting in a 0.4% month-on-month increase. Compared to the same month last year, sales decreased in non-durable goods such as cosmetics (-2.4%) but increased in semi-durable goods such as clothing (5.1%) and durable goods such as passenger cars (3.3%), resulting in a 0.5% increase.

Facility investment increased in machinery such as special industrial machinery (0.5%) but decreased in transportation equipment such as ships (-9.7%), resulting in a 2.2% month-on-month decrease. Compared to the same month last year, investment increased by 2.2% due to rises in machinery such as special industrial machinery (1.8%) and transportation equipment such as passenger cars (3.7%).

The coincident composite index, which reflects the current economic situation, rose by 0.6 points month-on-month. In contrast, the leading composite index, which forecasts future economic conditions, fell by 0.3 points month-on-month, marking a decline for five consecutive months.

(Photo) [Image source=Yonhap News]

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