Global supply chain disruptions have a full-fledged impact on Ulsan

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As Ulsan, an industrial city centered on manufacturing, enters the sphere of influence of global supply chain disruption, the decline in the mining and industrial production index recorded the highest level this year. In particular, the manufacturing inventory index soared to its highest level in 17 months. On the other hand, the consumption index is showing a gradual recovery as more outside activities are taking place due to the expansion of vaccinations, the payment of national subsidies, and the easing of social distancing.

According to the ‘September Ulsan Industrial Activity Trend’ announced by the Southeast Regional Statistical Office on the 31st, the Ulsan mining industry production index in September was 84.4, down 11.6% from the same month of the previous year. This is the biggest decline this year. Ulsan’s mining and industrial production index has been below the standard all year round except for one month in March (100.7).

By industry, automobiles (-25.7%) and other transportation equipment (-27.0%) were particularly sluggish. Production of chemical products (8.7%) and petroleum refining (2.5%) increased. It is analyzed that the sluggish automobile industry was affected by the global semiconductor supply shortage and the aftermath of the Haeundae crisis.

Mining and industrial shipments also decreased by 7.9% from the same month of the previous year as automobiles (-18.7%) and other transportation equipment (-26.6%) decreased. Shipments of machinery and equipment (2.7%) and coal mining (137.3%) were reported to have increased.

In particular, manufacturing inventories increased by 12.6% compared to the same month of the previous year as shipments from the mining industry decreased. The manufacturing inventory index soared to the highest level in 17 months since May last year (151.0). Inventories of petroleum refining (76.5%) and chemical products (35.9%) increased significantly, while automobiles (-46.7%) and primary metals (-5.8%) decreased.

The retail sales index, which shows consumption trends, rose 0.4% to 85.2. In particular, department stores recorded 80.3, an increase of 12.6% from the same month of the previous year, while large marts decreased 8.9% to 90.2. By product group, entertainment, hobbies, sporting goods, clothes, shoes, and bags increased, but consumption of home appliances, food and beverages, and cosmetics was sluggish.

Ulsan construction orders in September, an investment indicator, were 61.7 billion won, down 63.5% from the same month last year.

By orderer, orders from the public sector such as public corporations and other public organizations decreased by 87.5%, and by construction type, the civil engineering sector such as machine installation and land creation decreased by 96.7%.

Meanwhile, the national industrial production index (excluding seasonal adjustment and agriculture, forestry and fisheries) in September was 113.1, up 1.3% from the previous month. This is the first increase in three months. By industry, production in the service industry increased by 1.3%, leading the increase in production in all industries. Manufacturing output fell 0.9%.

Reporter Seok Hyunju hyunju021@ksilbo.co.kr

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