S. Korea's industrial output dropped in June; spending, investment rose

6월 산업생산, 두달째 감소 소비•투자는 반등

Findings for June show a mixed economic performance with industrial output extending its on-month retreat but private spending rebounding on month.
Our Park Kun-woo covers the causes and more.

Industrial output for South Korea dropped in June compared to the previous month, while spending and investment both saw increases.
According to related data released by Statistics Korea on Wednesday, overall industrial production fell by 0-point-1 percent on-month in June.
That's the second total output drop in as many months.
By sector,
public administration and construction decreased by five-point-one percent and zero-point-three percent respectively dragging the total industrial output down as well.

Statistics Korea says the lower output in public administration was due to earlier-than-usual budget executions made this year.
But the agency pointed to the increases in the mining and manufacturing sectors, including chips and chemical products.

"On the production side, semiconductors are booming because the demand outlook for IT devices is good and the AI industry is growing continuously. Exports for chips are good, too."

Private spending rebounded one-percent in June from May, making it the first time in three months that the country saw a rise in spending.
That's attributed to greater sales in durable goods such as automobiles and semi-durable goods, including shoes and bags.
But data also showed that spending dropped by more than three-percent compared to a year before, making it the fourth consecutive drop.
Equipment investment increased by 4-point-3 percent in June on-month.
Investment in machinery, including special industrial machinery, rose by over six percent.

Park Kun-woo, Arirang News.

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2024-07-31, 14:00 (KST)