Industrial Production Index Drops by 0.3% in October

South Korea's industrial production index fell by 0.3% in October compared to the previous month, according to the October Industrial Activity Trends report released by Statistics Korea on November 29. The overall industrial production index stood at 113, reflecting a broader economic slowdown across various sectors.

Sector-wise Analysis

While mining and manufacturing production remained unchanged, manufacturing production saw a slight increase of 0.4%. However, this was offset by significant declines in construction production (-4%) and public administration production (-3.8%). The service industry production, an indicator of service industry consumption, increased by 0.3%, with semiconductor production expanding by 8.4% and automobile production decreasing by 6.3%.

Retail Sales and Facility Investments Decline

The retail sales index, which measures product consumption, decreased by 0.4% from the previous month. Facility investment also saw a notable decrease of 5.8%, primarily due to reductions in investment in machinery and transportation equipment.

Construction and Economic Indicators

Construction completion decreased by 4%, with civil engineering and building construction contracting by 9.5% and 1.9%, respectively. The coincident composite index remained flat at 98.1, while the leading composite index fell by 0.1 points to 100.6.

Statistics Korea noted that the decline in industrial production, coupled with decreases in retail sales and facility investments, suggests a potential slowdown in economic activity.