South Korea’s Industrial Production Holds Firm in August

(MENAFN) South Korea's industrial output remained flat in August, as data released Tuesday by Statistics Korea revealed that both consumption and investment turned negative.

The seasonally adjusted production index for all industries, excluding agriculture, livestock, and fishing, showed no change compared to July. This followed two months of growth, highlighting a slowdown in overall industrial activity.

Manufacturing output saw a solid increase of 2.6% in August, while the construction sector witnessed a sharp decline, falling 6.1%. In the service and public administration sectors, production dropped by 0.7% and 1.1%, respectively.

Notable gains were recorded in the automobile and pharmaceutical industries, which saw double-digit growth. However, production in the semiconductor and food sectors registered single-digit losses.

In terms of capacity utilization, manufacturers operated at 74.7% of their capacity in August, marking a 2.2 percentage point rise from the previous month.

Private consumption, reflected in the retail sales index, shrank by 2.4% in August, reversing the 2.7% increase seen in July. Facility investment also declined by 1.1% following a strong 7.6% rise in July.

The cyclical variation factor for leading economic indicators, which forecasts future economic conditions, rose by 0.5 points to 102.0 in August. Meanwhile, coincident economic indicators, which reflect current economic performance, climbed by 0.2 points to 99.2.

The mixed economic signals underscore concerns about the trajectory of South Korea's economy in the coming months.

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