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
(Auto generated news from IANS Feed. This has not been edited by enewstime desk)
