Last month witnessed a turnaround in domestic production and consumption with an increase, while investments declined for the second consecutive month.
According to the “Industrial Activity Trends for November 2023” report released by Statistics Korea on Dec. 28, overall industrial production, excluding seasonally adjusted figures and activities in agriculture, forestry, and fisheries, increased by 0.5 percent compared to the previous month.
The overall industrial production maintained a growth trend for two consecutive months since August, with increases of 1.9 percent and 1.1 percent in September following a decline in July of -0.8 percent. However, October witnessed a significant contraction of -1.8 percent, marking the largest decrease in 42 months since April 2020, which saw a decline of -1.8 percent. In November, the overall industrial production rebounded, driven by a 3.3 percent increase in mining and industrial production, particularly in semiconductors with a growth of 12.8 percent and machinery and equipment with an increase of 8.0 percent.
Kim Bo-kyung, the head of the economic trends statistics review division at Statistics Korea, stated, “Despite the decline in October attributed to the early-quarter effect, there is a significant rebound in production in November, driven by the base effect and the resurgence in exports.”
Retail sales, which reflects consumer trends, increased by 1.0 percent compared to the previous month. Durable goods, particularly centered around automobiles, saw a rise of 2.6 percent, while non-durable goods, focused on food and beverage products, increased by 0.6 percent, driving the overall upward trend. On the other hand, semi-durable goods experienced a decrease of 0.4 percent due to a decline in the consumption of items such as shoes, bags, and clothing.
Facility investment showed an increasing trend, with a growth of 4.1 percent in August and an 8.7 percent increase in September. However, it experienced two consecutive months of decline, with a decrease of -3.6 percent in October and -2.6 percent in November.
The cyclical component of the coincident composite index, which reflects the current economic situation, decreased by 0.1 points, while the cyclical component of the leading composite index, indicating the future economic situation, increased by 0.2 points.