FX.co ★ South Korea Industrial Production Falls 0.7% In November

In November, South Korea experienced a decrease in industrial output, with a seasonally adjusted decline of 0.7 percent from the previous month, as reported by Statistics Korea on Monday. This drop was larger than the anticipated 0.4 percent decline, especially after output remained unchanged in October.

Comparatively, the year-over-year industrial output saw a marginal increase of 0.1 percent, which fell short of the expected 0.4 percent rise, following a substantial 6.3 percent increase in October.

The all-industry production index witnessed a contraction of 0.4 percent month-over-month and 0.3 percent year-over-year.

Specifically, the Manufacturing Production Index decreased by 0.7 percent monthly but increased by 0.3 percent annually. The Manufacturing Shipment Index showed a decline of 0.4 percent on a monthly basis and 3.0 percent annually, while the Manufacturing Inventory Index decreased by 0.8 percent monthly and 4.5 percent annually.

The Production Capacity Index saw a slight monthly decline of 0.2 percent but an annual increase of 0.6 percent. Meanwhile, the Capacity Utilization Rate Index decreased by 0.8 percent month-over-month and 2.0 percent year-over-year.

In November, the average capacity utilization rate in manufacturing was 71.8 percent, marking a decline of 0.5 percentage points from the previous month. The Service Index in November reflected a minor monthly decrease of 0.2 percent but an annual increase of 1.0 percent.

Retail sales improved by 0.4 percent month-over-month, offsetting the revised 0.8 percent decline in October (initially reported as a 0.4 percent drop), though sales experienced a 1.9 percent year-over-year decline.

The Equipment Investment Index fell by 1.6 percent monthly, although it increased by 2.6 percent annually. Meanwhile, the Domestic Machinery Shipment Index fell by 4.2 percent annually, with the value of Domestic Machinery Orders Received plunging by 15.3 percent on an annual basis.

In the construction sector for November, the value of completed construction at constant prices fell by 0.2 percent monthly and 12.9 percent year-over-year. Nonetheless, the value of construction orders received at current prices surged by 62.9 percent annually.

The Composite Coincident Index decreased by 0.3 percent month-over-month, while the Cyclical Component of this index, indicating current economic conditions, dropped by 0.5 points from the previous month.

Conversely, the Composite Leading Index rose by 0.3 percent monthly, with its Cyclical Component, which forecasts a potential turning point in the business cycle, increasing by 0.1 points from the previous month.