On the morning of the 29th, shops in Myeong-dong, Jung-gu, one of Seoul’s core commercial districts, were closed and closed. yunhap news
Last year’s industrial production hit by Corona 19 declined year-on-year for the first time since related statistics were written. In particular, the service industry, which is a domestic index, has stepped back. Last year consumption also declined for the first time in 17 years since 2003. Instead, only investment has overcome the base effect and turned to an increase.
However, it is comforting that all of the indicators of industrial activity in December recorded an uptrend due to the impact of export recovery amid the continuing third corona19 spread.
Production of all industries, first retreat after statistics
According to the December 2020 and annual industrial activity trends released by the National Statistical Office on the 29th, last year’s total industrial production (excluding agriculture, forestry and fisheries) decreased 0.8% from the previous year. This is the first time that all industrial production has retreated since 2000, when relevant statistics were started to be compiled.
This is due to a 0.4% increase in production in the mining industry, including manufacturing, but a 2.0% decrease in service production. In particular, face-to-face service businesses such as lodging and restaurant businesses (-18.2%), transportation and warehouse businesses (-14.2%), and arts, sports and leisure-related services (-33.0%) were significantly pushed.
Retail sales fell 0.2% year-on-year. It fell for the first time in 17 years after the card crisis in 2003 (-3.1%). While consumption of semi-durable goods (-12.2%) and non-durable goods (-0.4%) decreased, the consumption of durable goods such as passenger cars increased by 10.9%, reducing the decline. Eventually, policy factors such as a reduction in automobile consumption tax and refund of high-efficiency home appliances were reflected. .
Facility investment increased by 6.0% in 2018 (-3.6%) and 2019 (-6.2%) after two years in a row. Statistical Office Industry Trend Manager Kim Bo-kyung explained, “The facility investment has shown a good shape as facility investment in related industries has increased due to the recent favorable semiconductor economy.”
Recent production, consumption, and investment growth rate
December production, consumption, and investment’triple rise’
Looking at the monthly indicators in December of last year, production, consumption, and investment all recorded a’triple growth’. All industrial production increased by 0.5%, which is due to a 3.7% increase in production in the mining industry, including manufacturing. In the aftermath of the re-proliferation of Corona 19, production in the service industry turned negative (-1.1%) in four months after August (-1.9%).
Retail sales increased 0.2%, succeeding in breaking the decline in October (-1.9%) and November (-0.9%), and facility investment also increased 0.9%. The National Statistical Office explained that food consumption for’home meal’ increased instead of face-to-face consumption such as buying clothes due to prolonged distance.
The cyclical fluctuation of the economic coincidence index, which shows the current economy, recorded 98.9, maintaining the same level as in November. However, the cyclical fluctuation of the leading index, which predicts the future economy, rose 0.5 points to 103.0, rising for 7 consecutive months. Regarding the advancement of such leading indicators, manager Kim explained that “there is a situation where there is a gap between financial and real indicators, and there is a limit to predictive power due to a large external economic variable called Corona 19”
Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance said on Facebook, “After accepting various indicators for a week, we continue to feel regrets about the third spread of Corona 19.” “Enhancing private vitality so that improvement in economic sentiment can lead to’fast and strong economic recovery’ And I will speed up the strengthening of policy capabilities,” he wrote.
Sejong = Park Se-in reporter [email protected]
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