Industrial production 0.7%↓, consumption 3.2%↓, investment 8.9%↓
Recorded ‘triple decline’ for the first time in half a year since January of this year
Manufacturing shipments ↓·inventory ↑… Inventory rate increased by 11.6% points
“Slow passenger car sales, bad weather, decreased retail sales”
Industrial production, consumption, and investment decreased together last month. The ‘triple decline’ phenomenon has appeared again for the first time in half a year following January of this year. It appears that the economic recovery in the second half of the year has been put on hold.
Due to the slowdown in the Chinese economy, export shipments from manufacturing industries such as semiconductors decreased by the largest amount in about 36 years, leading to a significant increase in inventory ratio. As rainy days increased in the aftermath of the end of the individual consumption tax cut for passenger cars, consumption also decreased.
Looking at the July industrial activity trend announced by Statistics Korea on the 31st, the index of all industrial production (excluding seasonally adjusted agriculture, forestry and fisheries) last month was 109.8 (2020 = 100), a 0.7% decrease from the previous month.
All industrial production, which started with a 0.2% decline in January of this year, fluctuated repeatedly in the first half of the year. It showed an increase for two consecutive months in May and June, but turned to decline in July. Last month, overall industrial production increased in the service and construction industries, but decreased in the mining and public administration industries.
Mining and industrial production decreased by 2% compared to the previous month. This is the second consecutive month of decline since last June. Among메이저사이트 the mining and manufacturing industries, the manufacturing industry decreased by 2%. There was an increase in clothing and fur (28.5%), but a decrease in electronic parts ( -11.2 %) and mechanical equipment ( -7.1 %). Semiconductors decreased by 2.3% compared to the previous month.
Manufacturing inventory increased by 1.6% from the previous month. After a month, inventory began to pile up again. Manufacturing shipments decreased by 7.8% compared to the previous month due to a decline in semiconductors and electronic components. In particular, export shipments decreased by 14.5%, recording the largest decline in 35 years and 11 months since August 1987 ( -15 %). The average operating rate of the manufacturing industry was 70.2%, down 1.6 percentage points from the previous month.
As a result, the manufacturing inventory ratio increased by 11.6 percentage points (p) compared to the previous month to 123.9%. Kim Bo-kyung, economic trend statistics reviewer at the National Statistical Office, said, “The Chinese economy did not recover as much as expected, and exports were sluggish in July compared to June. As a result, shipments decreased significantly, leading to a large increase in the inventory ratio.”
Service industry production increased by 0.4% compared to the previous month. It decreased in wholesale and retail ( -1.2 %), but showed a steady trend with increases in information and communication (3.2%) and finance and insurance (1.5%).
The retail sales index (seasonally adjusted), which shows consumption trends, decreased by 3.2% to 103.0 (2020 = 100) last month. This is the largest decline in three years since July 2020 ( -4.6 %). In particular, the decline in durable goods, especially passenger cars, was large ( -5.1 %).
Facility investment decreased by 8.9% compared to the previous month. This is the largest decline in 11 years and 4 months since March 2012 ( -12.6 %). Construction readiness, which represents a construction company’s actual construction performance in terms of value, increased by 0.8%.
The cyclical volatility value of the coincident index, which represents the current economy, fell 0.5 points, continuing the decline for two consecutive months following June. The cyclical volatility of the leading index, which predicts the economy, rose 0.4 points, showing an upward trend for three consecutive months.
Director Kim said, “The situation was not good, with 6 of the 7 indicators that make up the coincident index, including imports, retail sales, and the number of non-agricultural, forestry and fishery employed, all showing ‘minus’,” adding, “However, the leading index showed no improvement except for one, the construction order amount.” “Indicators were all positive, including cyclical indicators, short-term and long-term interest rate differentials, and the import-export price ratio,” he added.