South Korea's May Industrial Output Falls 0.3% as Chip Slump Cuts Investment 0.1%
Updated
Updated · Aju Press · Jun 30
South Korea's May Industrial Output Falls 0.3% as Chip Slump Cuts Investment 0.1%
3 articles · Updated · Aju Press · Jun 30
Summary
South Korea's total industrial production slipped 0.3% in May, while facility investment edged down 0.1%, extending weakness in the goods-producing side of the economy.
A 3.0% drop in mining and manufacturing drove the decline as semiconductor output sank 10.0% and pharmaceuticals 17.5%; officials also cited Middle East-related raw material disruptions and fires at auto-parts suppliers.
Retail sales still rose 0.1% and construction output climbed 3.8%, with services up 1.3% on gains in finance, insurance and R&D-related activity.
The coincident index fell 0.3 point—the biggest drop since October—though the leading index rose 0.7 point, suggesting near-term weakness but a somewhat firmer outlook.
The government said easing external uncertainty, including a U.S.-Iran peace memorandum, could help activity recover, but it still sees slow domestic demand and plans more support on prices, jobs and small businesses.