Seoul
South Korea’s industrial output fell in September, driven by a decrease in semiconductor manufacturing and overall production in the manufacturing sector, according to data on Thursday.
Industrial production declined by 0.3% compared to the previous month, following a 1.3% increase in August. Year-on-year, factory output dropped by 1.1%, highlighting ongoing challenges in the economy.
The mining and manufacturing sector saw a 0.2% reduction in output, largely attributed to a 2.6% decline in chip production. Additionally, the service sector’s output decreased by 0.7%, breaking a three-month growth streak.
Retail sales, which serve as an indicator of private spending, fell by 0.4% from the previous month, following a 1.7% rise in August. Although sales of durable goods like vehicles rose by 6.3%, sales of foodstuffs and non-durable goods decreased by 2.5%. Sales of semidurables, such as shoes and bags, also dropped by 3.2%. Duty-free shop sales saw a significant decline of 9.2%, largely due to fewer Chinese tourists visiting South Korea.
On a year-over-year basis, retail sales fell 2.2%, marking the seventh consecutive monthly decline. In contrast, facility investment rebounded with an 8.4% increase from August’s 5.1% decline. However, construction investment slightly decreased by 0.1% in September, extending its downward trend to five months.
A finance ministry official noted the growing downside risks to the economy and indicated that the government would implement measures to support exporters and the manufacturing sector, as well as to stimulate domestic demand, particularly in the struggling construction industry.
