Last month, overall industrial production remained stable compared to the previous month, while retail sales and equipment investment showed mixed results.
According to the 'July 2026 Industrial Activity Trends' report released by the National Data Agency on August 31, the overall industrial production index (seasonally adjusted) stood at 120.2 (2020=100), unchanged from the previous month (0.0%). Compared to the same month last year, it increased by 3.1%.
By sector, mining and manufacturing production rose by 0.2% from the previous month, bolstered by strong performance in electronic components (20.7%), while public administration saw a 10.4% increase. In contrast, the service sector, which reflects actual economic activity, experienced a 1.3% decline from the previous month due to poor performance in finance and insurance (-4.8%).
The retail sales index fell by 2.4% from the previous month, as sales of durable goods, including automobiles (-7.7%), semi-durable goods (-1.4%), and non-durable goods (-0.1%), all decreased. Year-over-year, retail sales also dropped by 0.8%, indicating a continued decline in consumer sentiment.
On the investment front, equipment investment saw a surprising rebound of 7.5% from the previous month, driven by increases in machinery for semiconductor manufacturing (4.2%) and transportation equipment (15.4%). Compared to the same month last year, equipment investment surged by 24.9%.
Construction performance, as indicated by construction output, decreased by 1.1% from the previous month, primarily due to a decline in building construction (-7.4%). Additionally, new construction orders plummeted by 34.0% compared to the same month last year, raising concerns about a potential downturn in the construction sector.
The coincident composite index, which reflects the current level of economic activity, rose by 0.8 points to 101.2, while the leading composite index, which predicts future economic conditions, increased by 0.4 points to 104.2.
* This article has been translated by AI.
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