S. Korea's industrial output expands in Sep on robust chip production
Seoul, Oct 31
South Korea's industrial production expanded from a month earlier in September, driven by robust semiconductor production, while retail sales lost ground for the second consecutive month, data showed on Friday.
Industrial production went up 1 percent last month compared with the previous month, according to data from the Ministry of Data and Statistics, reports Yonhap news agency.
Retail sales, a gauge of private spending, inched down 0.1 percent on-month. Facility investment jumped 12.7 percent, rebounding from an on-month decline in August.
The rise in overall industrial output was led by a 1.8 percent rise in the service sector. Gains in wholesale and retail, as well as finance and insurance, offset declines in arts, and accommodation and food services.
In contrast, the output of the mining and manufacturing sector, considered the backbone of the economy, lost 1.2 percent on-month.
Within this sector, however, semiconductor output surged 19.6 percent, marking the largest monthly increase since March 2023, when production jumped 26.5 percent.
Automobile production, in contrast, fell 18.3 percent, the steepest monthly decline since May 2020.
"The drop reflects a base effect," Lee Doo-won, a ministry official, said of the decline in auto production. "Overall, domestic and export volumes remain healthy."
Retail sales continued to decline for the second month in September, but the pace of decline sharply slowed from the 2.4 percent decrease recorded in the previous month.
The downward trend suggests consumption may be slowing after temporary gains earlier this year, when the government provided cash handouts under a supplementary budget to stimulate spending.
Retail sales of semidurable goods, such as apparel, fell 5.7 percent, and sales of nondurable goods, including cosmetics, lost 0.1 percent, while those of durable goods, such as home appliances, gained 3.9 percent.
Facility investment jumped thanks to strong purchases of machinery for semiconductor manufacturing and transportation equipment.
"The semiconductor sector's strong performance boosted related facility investments," Lee noted, highlighting a 28 percent rise in machinery for semiconductor production.
—IANS
— IANS
Reader Comments
Interesting data! The 19.6% surge in semiconductor output is massive, while auto production fell sharply. Shows how different sectors can move in opposite directions. Hope our Indian manufacturing learns from such patterns.
The retail sales decline for second month is concerning. Even in India, we're seeing similar patterns where consumer spending is slowing down post-festive season. Hope the global economy stabilizes soon.
While the semiconductor growth is impressive, I'm worried about the 18.3% drop in automobile production. This could affect global supply chains that Indian auto companies depend on. Need to diversify our partnerships.
The 28% rise in machinery for semiconductor production shows long-term commitment. India should take note - we need similar investments in high-tech manufacturing rather than just assembly units. Make in India should mean innovate in India!
Good to see facility investment jumping 12.7%! This indicates business confidence in future growth. Hope Indian companies show similar optimism in capital expenditure. The semiconductor boom is clearly driving global manufacturing trends.
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