Corona 19 re-proliferation sparks domestic demand… Consumption decreased for 2 consecutive months, 0.9%↓

▲ Ahn Hyeong-jun, an economic trend statistics examiner at the Statistical Office, explains the’November industrial activity trend’ ⓒYonhap News

Consumption declined by 0.9% compared to the previous month due to a contraction in consumption due to the re-proliferation of Corona 19. On the other hand, production turned to semiconductors and electronic parts, and investment turned to increase, centering on machinery.

According to the’November Industrial Activity Trend’ released by the National Statistical Office on the 30th, the production of all industries during this period increased 0.7% from the previous month, with the mining industry increasing for only two months and the service industry for three consecutive months. However, since the decline was 0.6% compared to the same month last year, it was feared that it would take a considerable amount of time for the economy to recover to the previous year’s level.

Of these, the production of the mining industry decreased by 8.8%, but increased by 0.3% from the previous month, thanks to the increase in semiconductors (7.2%) and electronic parts (7.4%). Memory semiconductors such as DRAM and flash memory for semiconductors, and OLED panels for smartphones and TVs for electronic parts led the increase.

The service industry’s production increased by 0.7%, with accommodation and restaurant stores -2.7% and wholesale and retail prices -0.3% MoM. However, financial and insurance (4.6%) and transportation and warehousing (1.5%) showed good results. Also, service industry production also fell 1.4% compared to the same month last year.

In terms of investment, investment in transportation equipment such as ships decreased by 3.7%, but equipment investment in machinery such as special industrial machinery increased by 6.3%, an increase of 3.6% from the previous month.

However, domestic machinery orders fell 21.8% from the previous month, with public orders -32.2% and private orders-21.3%.

In the case of construction completion, the civil works performance decreased by 4.0% from the previous month, but the construction work increased by 4.6%, an overall increase of 2.1%.

Consumption was hit directly by the decrease in going out due to the spread of Corona 19. Retail sales of semi-durable goods such as clothing, shoes and bags It was down 0.9% from the previous month. This is a decrease for the second consecutive month following the previous month (-0.1%).

The National Statistical Office explained that “non-durable goods such as food and beverages increased by 1.3% from the previous month, but semi-durable goods such as clothing decreased by 6.9%, and durable goods such as passenger cars decreased by 0.4%.”

However, the economic coincidence index, which informs the current economic situation, rose 0.5p from the previous month and the leading index, which predicts the future economy, rose 0.7p, respectively, revealing expectations for an economic recovery.

An official from the Ministry of Equipment said, “In November, production and investment indicators increased due to export improvements and base effects, but after mid-mid, the increase in service industry production decreased and retail sales decreased due to the re-proliferation of Corona 19. In December, due to increased distance, etc. There is a concern that the uncertainty in the domestic market will increase.” “We will continue our efforts to provide customized damage support and reinforce the economy for small businesses, while making thorough quarantine measures,” he said.

▲ November industrial activity trend ⓒ Ministry of Finance