Statistics Korea reported on Tuesday that South Korea’s industrial output had increased for the second consecutive month in September, due to the semiconductor sector’s recovery. Along with this, retail sales and facility investment also saw a year-on-year growth, indicating a gradual economic recovery. This was the first time since May that the country reported an increase in the three major indicators of industrial activities. Industrial output rose 1.1 percent month-on-month in September, following a 2 percent month-on-month gain in August, and compared with a year earlier, industrial output increased by 2.8 percent.
The growth was mainly driven by the chip industry, which recorded a 12.9 percent month-on-month gain, and the output from the semiconductor sector reported a month-on-month rise for the second month in a row. This was the first time in more than 14 years that the country’s chip output logged double-digit growth for two consecutive months, according to the agency. Additionally, South Korea’s chip exports also experienced a record 69.4 percent month-on-month increase in September.
The rise in global demand caused the country’s chip inventory to decrease by 6.7 percent last month, and the strong performance of the chip industry lifted the overall output of the manufacturing sector by 1.9 percent month-on-month. Retail sales, an indicator of private spending, edged up 0.2 percent month-on-month, ending two months of decline. Facility investment rose 8.7 percent in September from the previous month, due to the machinery and the transportation equipment sectors.
An agency official commented that the growth in the output from the manufacturing sector was partly due to low base effects, but industry overall has demonstrated signs of a recovery from the third quarter. The finance ministry also noted that the September readings showed signs of an economic recovery led by exports, and such an uptrend is expected to continue through the fourth quarter.