The South Korean Bureau of Statistics announced today that South Korean industrial production fell for the third consecutive month in September, while retail sales and factory investment also declined. This is a sign that the recovery of the South Korean economy is beginning to slow.
Industrial production fell by 0.6% in September compared with the previous month, following a 0.1% year-on-year decline in August. In September, industrial production increased by 3.1%.
Production in the mining, manufacturing, gas and electricity sectors fell by 1.8% compared with the previous month. It was put under pressure above all by the downturn in sectors such as the chip industry and the automotive industry.
The statistical office said, “Chip production is also declining due to the increase in inventory as a result of China’s lockdown including the sluggish information technology industry.”
Retail sales, which reflect private consumption, fell by 1.8% in September compared with the previous month. This is due to the fact that people reduced their spending on consumer goods, including food, even as they spent more on cars.
Fixed capital formation fell by 2.4% in September compared with the previous month after rising by 10.7% in August. It was weighed down by the decline in machinery purchases.