In June 2024, industrial activity showed a rebound in production, with mining and manufacturing (+0.5%) and services (+0.2%) recovering after a month of decline. However, the construction sector decreased (-0.3%), resulting in overall industrial production remaining relatively flat.
(%)
|
|
2023 |
2024 |
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Apr |
May |
Jun |
|
Entire industry |
m-o-m |
0.1 |
0.6 |
1.0 |
0.7 |
0.7 |
-0.3 |
1.4 |
-0.8 |
-0.1 |
|
y-o-y |
1.6 |
-0.3 |
1.3 |
1.3 |
2.9 |
2.1 |
3.4 |
2.3 |
0.5 |
|
Mining and manufacturing |
m-o-m |
0.4 |
2.6 |
1.3 |
2.2 |
-0.3 |
1.1 |
2.6 |
-0.6 |
0.5 |
|
y-o-y |
-8.3 |
-6.1 |
-0.4 |
4.8 |
5.9 |
4.8 |
6.4 |
4.3 |
3.8 |
|
Services |
m-o-m |
1.0 |
0.0 |
1.0 |
0.3 |
0.8 |
-0.3 |
0.8 |
-0.8 |
0.2 |
|
y-o-y |
6.3 |
2.6 |
2.3 |
1.8 |
2.1 |
1.6 |
2.4 |
2.1 |
0.5 |
Retail sales rebounded by 1.0% thanks to increased sales of durable goods (+5.2%), such as automobiles. Facility investment also saw a significant growth of 4.3%, driven primarily by a substantial rise in machinery investment (+6.5%) due to the acceleration in semiconductor equipment acquisition. Although construction investment fell by 0.3%, the decline was mitigated by a notable increase in civil engineering (+6.1%), despite a reduction in the building construction (-2.3%).
(%)
|
|
2023 |
2024 |
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Apr |
May |
Jun |
|
Retail sales |
m-o-m |
0.6 |
-0.5 |
-1.9 |
0.4 |
-0.5 |
-0.8 |
-0.6 |
-0.2 |
1.0 |
|
y-o-y |
-0.8 |
-0.7 |
-2.7 |
-1.9 |
-2.1 |
-2.9 |
-2.0 |
-2.9 |
-3.6 |
|
Facilities investment |
m-o-m |
-8.0 |
1.0 |
-3.1 |
3.1 |
-3.8 |
0.1 |
1.6 |
-3.6 |
4.3 |
|
y-o-y |
-1.0 |
-0.9 |
-10.7 |
-8.5 |
0.3 |
-1.3 |
0.4 |
-1.5 |
-2.7 |
|
Construction investment |
m-o-m |
4.2 |
0.6 |
1.6 |
-1.2 |
4.9 |
-5.6 |
4.9 |
-4.4 |
-0.3 |
|
y-o-y |
11.5 |
8.7 |
10.1 |
0.6 |
4.1 |
-2.4 |
0.6 |
-3.0 |
-4.6 |
In June 2024, industrial activities showed signs of recovery, with rebounds in major sectors such as manufacturing, services, retail sales and facility investment, indicating a gradual improvement towards the end of the quarter. However, there remains a disparity between the robust recovery in manufacturing and exports compared to the slower recovery in domestic sectors such as construction.
The government plans to implement policy tasks for the second half of the year without delays, including a 25 trillion won support package for small businesses and an additional 15 trillion won in public sector investments and loans to bolster construction investment. It also aims to address vulnerabilities by swiftly providing support to small businesses and consumers affected by the WeMakePrice and TMON payout delays, as well as preparing employment support measures for the construction sector.
Please refer to the attached files.
