Seoul: South Korea's industrial output witnessed a decline in January, primarily driven by a slowdown in manufacturing, especially in the semiconductor sector, while private consumption and facility investment showed positive trends, according to the latest government data released Wednesday.
According to Yonhap News Agency, industrial production fell by 1.3 percent on a month-on-month basis in January, marking the first decline in three months. This data was provided by the Ministry of Data and Statistics. The mining and manufacturing sectors, crucial components of the nation's economy, experienced a contraction of 1.9 percent.
The detailed report highlights a 4.4 percent decrease in semiconductor production and a significant 17.8 percent drop in the production of transportation equipment, including oil tankers and container vessels. Despite robust exports in the semiconductor sector, the ministry clarified that production has shown limited growth since reaching a peak in September. The rise in exports was largely due to increased prices, although production of high-value chip products like high bandwidth memory remains strong.
Retail sales saw no change, yet private consumption rose by 2.3 percent during the same period, fueled by higher demand for clothing, communication devices, and cosmetics. Facility investment increased by 6.8 percent, marking the first rise in four months, driven by higher investment in machinery and transportation equipment.
Particularly noteworthy was the 41.1 percent surge in investment in semiconductor manufacturing machines and a 16 percent increase in investments for automobiles. Meanwhile, the construction industry saw an 11.3 percent decline in output for January. However, the sector showed signs of a gradual recovery, as construction orders jumped 35.8 percent, the largest growth in five months, as per the data.