Industrial production in March rose 1.5% from the previous month, returning to an increasing trend for the first time in three months. On the other hand, consumption and investment decreased.
According to the March industrial activity trend announced by the National Statistical Office on the 29th, the production index for all industries in March was 117.1 (2015 = 100), up 1.5% from the previous month. The increase is the largest in nine months since June last year (1.8%).
Production in all industries decreased in the construction industry (-0.3%), but increased in the mining industry (+1.3%), public administration (+3.4%), and service industry (+1.5%), increasing by 1.5% MoM and 3.1% YoY.
Mining and industrial production decreased in semiconductors (-2.3%) and automobiles (-2.3%), but increased in foodstuffs (+7.1%) and other transportation equipment (+11.3%), up 1.3% MoM and 3.7% YoY.
Service industry production decreased in arts, sports and leisure (-0.4%), but increased in finance/insurance (+3.8%), wholesale and retail (+1.2%), accommodation and food (+2.0%), etc., increased by 1.5% MoM and 3.7% YoY % increased.
The manufacturing average utilization rate was 78.9%, an increase of 1.3%p from the previous month, the highest level in nine years and two months. Manufacturing inventories decreased by 0.3% MoM and shipments increased by 0.9%, while the manufacturing inventory/shipment ratio (stock ratio) fell 1.4%p MoM to 114.4%.
Retail sales (-0.5%) showed an increase in non-durable goods such as food, beverages and pharmaceuticals, but fell due to a decrease in durable goods due to a large base effect in the previous month. Sales of non-durable goods (4.1%) increased, but sales of durable goods (-7.0%) and semi-durable goods (-2.6%) declined 0.5% MoM and increased 2.3% MoM.
Facility investment decreased by 2.9% from the previous month and 6.0% from the same month of the previous year as both transportation equipment (-3.0%) and machinery (-2.9%) decreased due to supply chain instability. Domestic machinery orders increased by both public (35.6%) and private (12.8%), up 13.9% MoM and 15.4% YoY.
As for construction completion, civil works (3.1%) increased, but building construction (-1.4%) performance decreased, decreasing 0.3% from the previous month and 7.3% from the same month of the previous year. Construction orders (regular) rose 7.2% MoM and 1.5% MoM. The recent rise in construction material prices has affected the construction schedule, resulting in a sluggish trend.
In March, the coincident economic index (102.4) fell 0.2p due to sluggish construction and turned to a downward trend for the first time in six months, and the leading economic index (99.5) also fell 0.3p due to a decrease in the import/export price ratio.
In March, the Ministry of Strategy and Finance continued the recovery trend on the production side, with all industrial production rebounding significantly due to the joint improvement of the mining industry and the service industry in March. analyzed to be seen. However, the continued double-digit export growth trend, the recent decrease in the number of confirmed cases of COVID-19, and the recovery of economic sentiment following the lifting of social distancing measures are positive for future indicators.
The Ministry of Strategy and Finance also predicted that external uncertainties will continue to grow, such as rising inflationary pressure, concerns about supply chain disruptions due to the prolonged Ukraine crisis and China’s lockdown measures, and the possibility of accelerating monetary policy transitions in major countries.
The Ministry of Strategy and Finance plans to focus its efforts on policy responses to maintain the stability of people’s livelihoods and economic resilience, such as the cost of living, while making every effort to respond to internal and external risks.
Inquiries: Industrial Trends Division (042-481-2161), Economic Trend Statistical Review Office, Statistics Korea, Economic Analysis Division, Economic Policy Bureau, Ministry of Strategy and Finance (044-215-2730)
Source: Policy Briefing
.jpg?fit=300%2C300&ssl=1){kind=spacer}
