▲ Industrial activity trend in April 2021 (Statistics Office)
All industrial production in April decreased 1.1% from the previous month as semiconductor production decreased significantly. The National Statistical Office assessed that the decline in semiconductor production was a simple base effect, leading to a strong economic recovery or improvement trend as the service industry production and retail sales showed strong performance.
The National Statistical Office announced on the 31st that through the’Industrial Activity Trends for April 2021′, all industrial production increased in the service industry, but production decreased in the mining and construction industries, decreasing by 1.1% compared to the previous month.
Among them, production in the mining industry increased by mechanical equipment (5.3%), but decreased in semiconductors (-10.9%) and rubber and plastics (-4.0%), down 1.6% from the previous month. The semiconductor market declined from the previous month due to temporary adjustments due to underlying factors, but continued to increase by 30.0% compared to the same month last year.
The service industry production index (seasonal adjustment) and retail sales value index (seasonal adjustment) were 110.2 and 120.5, respectively, the highest since the statistics were prepared. “Consisting of the easing of social distancing phases, increasing vaccination progress, and increasing demand for outdoor activities due to warm weather,” said Eoonsun, an economic trend statistics officer at Statistics Korea. Is improving,” he said.
In April, facility investment increased by 3.5% compared to the previous month, as investment in machinery such as special industrial machinery (3.0%) and transportation equipment such as aircraft (5.0%) increased. Construction performance increased by 1.7%, but the performance of civil engineering (-7.2%) decreased by 0.8% compared to the previous month.
The cyclical fluctuation of the coincident comprehensive index, which shows the current economic situation, rose 1.1p MoM. The cyclical fluctuation of the coincident index has been increasing for the third consecutive month since a 0.3% decrease in January.
The cyclical fluctuation of the leading comprehensive index, which predicts the future economy, also rose 0.4p from the previous month. It has risen for the 11th month since the decline of 0.2P in May last year, the longest increase in 11 years and 3 months since February 2009 to January 2010.
Kim Young-hoon, head of the Economic Analysis Division of the Ministry of Strategy and Finance, said, “In April, industrial activity trends were temporarily adjusted for mining and all industries, but most of the major indicators are above the pre-crisis level (January 2020) and the recovery continues.”