S. Korea's industrial output down 1.9% m/m in October, biggest fall in 18 months
Updated: 2021-11-30 17:03:45 KST
South Korea's overall industrial production in October saw its sharpest on-month fall in 18 months.
According to Statistics Korea on Tuesday, industrial output dropped almost two percent from the previous month after a 1.1 percent gain in September.
Output in the mining and manufacturing sector was down 3 percent last month, the largest fall since May last year.
Car production dropped by about 5 percent following a global shortage of auto chips, while primary metals such as steel fell by almost 6 percent.
Services also edged down point-3 percent over the same period.
While restaurants and accommodation rose 4.5 percent, several service sectors, such as finance and insurance as well as science and technology all dropped by more than 2 percent.
Meanwhile, retail sales, a barometer of consumer demand, climbed point-two percent from the previous month led by sales of clothing and home appliances.
But facility investment dipped 5.4 percent on-month following lower investment in machinery and transportation equipment.
The statistics agency acknowledged that the country's economic recovery has weakened.
"The recent economic recovery or improvement trend has slowed down. But it should be taken into account that the slump was largely due to fewer working days from the alternative holidays in October as well as the high base effect from last month."
Given this, the agency, said it was too early to fully assess the economic situation based on last month's numbers.
Finance Minister Hong Nam-ki said he expects to see better data in November as private spending continues to improveand exports remain strong.
However, he noted that downside risks, such as supply chain disruptions, persist and added there are growing uncertainties from COVID-19.
For the rest of this year, he vowed to make all-out efforts to restore economic growth, by focusing on reviving domestic demand and investment.
Min Suk-hyen, Arirang News.