Korean industrial output continues upwards for 4th month

[Graphics by Song Ji-yoon]

South Korea’s industrial production continued its upward trend for a fourth consecutive month in February 2024.

According to data released by Statistics Korea on Friday, the seasonally adjusted industrial output stood at 115.3 in February, up 1.3 percent from a month earlier.

The index increased for a fourth month after gaining 0.3 percent in November 2023, 0.4 percent in December, 0.4 percent in January 2024, and 1.3 percent in February.

By industry, mining and manufacturing output rose by 3.1 percent, largely driven by the 3.4 percent growth in manufacturing output, which turned positive for the first time in three months since November 2023.

Semiconductor production also rebounded with a 4.8 percent increase after an 8.2 percent decline in January 2024, while production of machinery and equipment as well as electronics and components also rose by 10.3 percent and 12.5 percent respectively.

However, production of communication and broadcasting equipment and tobacco fell by 10.2 percent and 6.2 percent respectively.

The inventory-shipment ratio in manufacturing stood at 110.1 percent, down 1.4 percentage points from the previous month.

Service output also rose 0.7 percent, with a 5 percent increase in accommodation and restaurants, and 1.6 percent in logistics and warehouses, as well as a slight increase of 0.1 percent in wholesale and retail trade.

Retail sales, indicating trends in goods consumption, fell by 3.1 percent, its largest fall in seven months since July 2023.

[Graphics by Song Ji-yoon]

Sales of both non-durable goods such as food products and cosmetics and durable goods such as communications devices and electronics fell by 4.8 percent and 3.2 percent respectively. Those of semi-durable goods such as clothing were up by 2.4 percent.

Facility investment saw a 10.3 percent increase, the largest increase in nine years and three months since November 2014. Investment in transportation equipment and machinery also rose compared to the previous month by 23.8 percent and 6 percent. The cyclical component of the composite coincident index, a measure of current economic conditions, rose 0.1 point to 99.7, turning positive for the first time in three months.

The composite leading index for economic indicators, which shows the current economic situation, rose by 0.2 points to 99.9 from the previous month. The leading index for future economic indicators, which signal future economic trends, increased by 0.1 points to 100.4 from the previous month.