Industrial Production Rises for Three Consecutive Months in January Due to Construction Sector Rebound (Update)

Industrial production continued its upward trend for the third consecutive month in January this year, supported by a rebound in the construction sector.

According to the 'January 2024 Industrial Activity Trends' released by Statistics Korea on the 4th, total industrial production in January increased by 0.4% compared to the previous month. This marks the third consecutive month of growth following increases of 0.3% and 0.4% in November and December of last year, respectively.

By sector, production decreased in mining and manufacturing industries including manufacturing (-1.3%), but increased in construction (12.4%) and services (0.1%). Within mining and manufacturing, production rose in areas such as telecommunications and broadcasting equipment (46.8%), but declined in semiconductors (-8.6%) and machinery equipment (-11.2%).

Semiconductor production had shown an upward trend for two consecutive months in November (9.8%) and December (3.6%) last year, but fell by 8.6% in January, marking a decrease after three months. Regarding the decline in semiconductor production, a Statistics Korea official explained, "The base effect from November and December last year had a significant impact."

Manufacturing inventories increased by 0.4% compared to the previous month, and the average operating rate rose by 0.1 percentage points to 72.0%.

A researcher is showcasing an MPW test chip in the 12-inch semiconductor testbed cleanroom at the Daejeon Nano Convergence Technology Institute. It is forecasted that the global semiconductor shortage will continue until the middle of next year. As the local industry in the region, which is pursuing a semiconductor ecosystem advancement strategy, faces potential impacts from this trend, attention is focused on the responses emerging from countries around the world. Our government is also accelerating efforts to advance the semiconductor ecosystem. Through the 'K-Semiconductor Strategy Report,' the government envisions a leap to becoming a comprehensive semiconductor powerhouse by 2030, aiming to complete semiconductor localization through massive investments and tax benefits. Having achieved K-quarantine through COVID-19, South Korea is expected to proudly demonstrate the success of K-Semiconductor in the global semiconductor supremacy competition. /Daejeon=Photo by Kang Jin-hyung aymsdream@

원본보기 아이콘

Retail sales also increased by 0.8% compared to the previous month. Sales of semi-durable goods such as clothing decreased by 1.4%, and durable goods such as passenger cars decreased by 1.0%, but sales of non-durable goods such as cosmetics increased by 2.3%.

Facility investment decreased by 5.6% compared to the previous month, as investments declined in machinery such as special industrial machinery (-3.4%) and transportation equipment such as aircraft (-12.4%).

Domestic machinery orders increased by 3.8% in the public sector but decreased by 3.7% in the private sector, resulting in a 2.7% decrease compared to the same month last year. Construction orders fell by 53.6% year-on-year, with declines in building construction such as housing (-47.7%) and civil engineering such as machinery installation (-60.0%).

The coincident index, which reflects the current economic situation, rose by 0.1 points from the previous month to 99.7. The leading index, which predicts future economic conditions, remained unchanged at 100.3 compared to the previous month.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.