On Thursday, data from Statistics Korea revealed that South Korea’s industrial output, retail sales, and facility investment all decreased from the previous month, reflecting growing worries about an economic slowdown.
Industrial output decreased by 0.7%, with the mining, manufacturing, gas, and electricity industries seeing a 2% drop due to a decline in the electronic components sector (11.2%). Semiconductor production also fell 2.3% and shipments dropped 31.2%.
Retail sales dropped 3.2% due to weak demand for durable goods, such as automobiles (5.1% decrease). Clothing sales also decreased 3.6%.
Facility investment declined 8.9%, largely due to reduced transportation equipment and machinery investments. This was the sharpest decrease since March 2012.
An official from Statistics Korea commented that the economy appears to be in a sluggish state, and that people avoided outdoor activities due to heavy rains during the month, contributing to the overall decrease in consumer sales.
The Ministry of Economy and Finance attributed the decrease to “temporal factors,” such as weather conditions, and noted that overall industrial activities remain on a recovery trend.
The ministry added that it will closely monitor any potential impacts from China’s property market crisis and other global uncertainties.
An official from Statistics Korea holds a briefing on South Korea's monthly industrial output in the central city of Sejong on Aug. 31, 2023. (Yonhap)
This Aug. 1, 2023, file photo shows containers stacked at a port in the southeastern city of Busan. (Yonhap)