According to the National Data Agency’s “March 2026 Industrial Activity Trends” released on the 30th, all-industry output rose 0.3% from the previous month, led by gains in services (up 1.4%) and mining and manufacturing (up 0.3%).
All-industry output increased 1.2% in December, fell 0.8% in January, rebounded 2.1% in February, and extended the rise in March.
Mining and manufacturing output rose 0.3% as increases in autos (up 7.8%) and other transport equipment (up 12.3%) offset a drop in semiconductors (down 8.1%). The agency said the semiconductor decline reflected base effects after a 28.2% surge the previous month, while overall conditions remained favorable.
Services output climbed 1.4%, driven by finance and insurance (up 4.6%) and transportation and warehousing (up 3.9%).
Still, the impact of the Middle East war was visible in some industries. Petroleum refining output fell 6.3% from the previous month, and chemicals slipped 0.3%. The agency cited a combination of war-related uncertainty in crude supply and seasonal factors such as scheduled maintenance.
Consumption continued to recover. Retail sales rose 1.8% from the previous month, led by higher sales of durable goods such as communications devices and computers, supported by new smartphone launches and stronger back-to-school PC demand.
Facility investment increased 1.5% from the previous month on expanded investment in transport equipment, including aircraft purchases.
Construction investment remained weak. Construction completed fell 7.3% from the previous month as civil engineering (down 13.7%) and building construction (down 4.5%) both declined.
Business-cycle indicators improved. The coincident composite index (cyclical component) rose 0.5 point from the previous month, and the leading composite index (cyclical component) gained 0.7 point.
A National Data Agency official said March data appeared to reflect the Middle East war only in a limited way, adding that the impact could become more pronounced after April in related industries and would require further monitoring.
For the first quarter, all-industry output rose 1.7% from the previous quarter, supported by gains in mining and manufacturing (up 2.7%) and services (up 1.2%). Consumption and investment also improved: retail sales rose 2.4%, and facility investment jumped 12.6%. Construction completed increased 1.2%, returning to growth.
The government said the figures showed a broadly based recovery across production, consumption and investment, consistent with the first-quarter gross domestic product growth rate of 1.7% announced last week. It said the recovery that has continued since the second half of last year was again confirmed in the industrial activity data.
The government added that despite the external shock of the Middle East war, measures to support the domestic recovery and invigorate capital markets, along with a price cap system, helped limit the impact.
It said it would step up efforts to sustain the recovery by minimizing the war’s economic spillover effects. It also said it would swiftly execute supplementary budget programs, including support payments for damage from high oil prices, and push initiatives such as an “eco-friendly green consumption and tourism boost” and a “youth New Deal implementation plan,” while preparing additional measures, including an economic growth strategy for the second half of the year.
* This article has been translated by AI.
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