SEOUL, September 30 (AJP) —South Korea’s factory output sank 5.1 percent in August - the steepest monthly decline in 10 months - amid rising inventories, easing external demand and a deepening slump in domestic demand, government data showed Wednesday.
The broader mining, manufacturing and utilities output index fell 4.8 percent from the previous month, also the biggest pullback since October 2025, according to the Ministry of Data and Statistics.
Automaking was the main drag, with output plunging 24.8 percent from July, while semiconductor production fell 2.2 percent.
Chip shipments remained solid, rising 7.1 percent, with export shipments up 7.9 percent. Automobile shipments fell 20.7 percent, including a 23.2 percent drop in shipments for export.
Across manufacturing, domestic shipments declined 3.9 percent and export shipments fell 3.2 percent. Inventories rose 0.6 percent overall, although stocks of semiconductors and automobiles declined.
The all-industry production index fell 1.3 percent from the previous month after slipping 0.1 percent in July. Services output rose 0.5 percent and construction increased 1.9 percent.
Retail sales declined 1.8 percent from July, extending a revised 2.6 percent drop in the previous month.
Sales of durable goods, including passenger cars and home appliances, fell 4.5 percent, while nondurable goods such as food and beverages declined 1.6 percent.
Facility investment dropped 9.5 percent from the previous month, reversing an 8.0 percent increase in July.
Investment in transport equipment sank 32.8 percent, while machinery investment rose 1.6 percent.
Despite the monthly retreat, facility investment remained 16.1 percent above its year-earlier level, with machinery investment — owing to brisk chip facility upscaling — up 25.4 percent.
Forward-looking construction orders fell 10.6 percent from a year earlier despite the monthly rebound in completed construction work. Orders for buildings, including factories and warehouses, dropped 14.1 percent.
Broader business-cycle indicators were mixed. The cyclical component of the coincident index, which tracks current economic conditions, rose 0.5 point, while the corresponding leading index, a gauge of the outlook, slipped 0.1 point.
- South Korea's factory output fell 5.1 percent in August, led by a 24.8 percent plunge in automobile production.
- Semiconductor output slipped 2.2 percent, but semiconductor shipments rose 7.1 percent and export shipments increased 7.9 percent.
- Retail sales declined for a second month, while equipment investment fell 9.5 percent after rising in July.
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