Production 0.7%↓ Consumption 0.2%↓ Investment 7.5%↓… Mining and manufacturing industry production decreased for the first time in 7 months
Supply chain disruptions and rising raw material prices… “There is a lot of uncertainty in the economy.”
(Sejong = Yonhap News) Reporter Cha Ji-yeon, Kwak Min-seo, and Park Won-hee = In April, production, consumption and investment decreased all at once, showing a ‘triple decrease’ for the first time in two years and two months.
Amid growing concerns about global inflation (inflation), rising raw material prices and disruptions in the supply chain continue to increase economic uncertainty.
According to the industrial activity trend of the National Statistical Office on the 31st, the index of all industrial production (excluding seasonal adjustment and agriculture, forestry and fisheries) in April was 116.4 (2015 = 100), down 0.7% from the previous month.
All industrial production declined in January (-0.3%) and February (-0.3%) this year, and then rebounded in March (1.6%), but fell again in April.
In April, mining and industrial production fell 3.3%, the first time in 7 months of decline.
This is due to a 3.1% decrease in manufacturing output as production of semiconductors (-3.5%) and foodstuffs (-5.4%) decreased.
Manufacturing inventories turned to an increase, increasing 0.2%, led by machinery and equipment.
Public administration (-4.3%) production also decreased.
However, service production increased by 1.4%. As social distancing measures such as restrictions on private gatherings and business hours were lifted, production in the lodging and restaurant businesses (11.5%), including restaurants and pubs, increased significantly, and demand for beauty products increased, leading to an increase in the production of associations, repairs, and individuals (8.7%).
Construction (1.4%) production also increased.
The retail sales index (seasonally adjusted), which shows consumption trends, was 119.7 (2015 = 100) last month, down 0.2% from the previous month.
The retail sales index decreased in January (-2.0%) and remained flat in February, but declined for two consecutive months in March (-0.7%) and April.
However, the National Statistical Office diagnosed that overall service consumption itself improved from the previous month as the demand for domestic consumption shifted to external consumption such as eating out due to the recent lifting of the distance.
By item, sales of semi-durable goods such as clothes (7.7%) and durable goods (0.4%) such as automobiles increased, but sales of non-durable goods (-3.4%) decreased due to a decrease in drug sales due to a decrease in the number of confirmed cases of novel coronavirus infection (COVID-19).
Facility investment fell 7.5% from the previous month, continuing the downward trend for three consecutive months. According to the National Statistical Office, investment in semiconductor equipment is being delayed due to disruptions in the global supply chain and rising raw material prices.
It is the first time in 26 months since February 2020 that production, consumption and investment all decreased.
The cyclical fluctuation of the coincident index representing the current economy was 102.1, down 0.3 points (p) from the previous month. It was the second straight month of decline following March.
The cyclical variability of the leading index, which predicts the economy, fell 0.3 points (p) to 99.3, continuing the downward trend for 10 consecutive months.
Eo Woon-seon, director of economic trend statistics at Statistics Korea, said, “As mining and industrial production was adjusted, overall production turned to a decline, and domestic indicators such as retail sales and facility investment were also somewhat sluggish.” said
He said, “The external unrest factors such as global supply chain disruption, international raw material price rise, and global inflation (inflation) concerns overlapped with negative factors such as the Ukraine crisis, which acted as a downside factor. As there are upside factors, the future economic trend is highly uncertain.”
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2022/05/31 08:38 Send