S. Korea’s Industrial Production Contracts in May
(MENAFN) South Korea’s industrial production contracted for the second consecutive month in May, weighed down by the impact of U.S. tariffs and weakening consumer demand, data from the national statistical agency revealed Monday.
Excluding the agriculture, livestock, and fisheries sectors, the seasonally adjusted production index across all industries dropped 1.1 percent last month compared to April, following a 0.8 percent decline in April, according to Statistics Korea.
Manufacturing output fell sharply by 3.0 percent in May, accelerating from a 0.6 percent drop the previous month, primarily driven by U.S. protectionist policies that have curbed demand for South Korean goods.
The average capacity utilization rate for manufacturers also dipped to 71.7 percent in May, marking a 2.1 percentage point decline from April.
Meanwhile, the construction sector’s production shrank 3.9 percent in May, worsening from a 1.4 percent fall in the prior month.
In the service industry, output edged down 0.1 percent, whereas the public administration sector saw a modest increase of 0.8 percent last month.
Retail sales, a key indicator of private consumption, held steady in May after a 0.9 percent decrease in April.
Facility investment plunged 4.7 percent in May, continuing its downward trajectory for a third straight month.
Looking ahead, the cyclical variation factor for leading economic indicators—which predicts future economic trends—fell by 0.1 point to 100.9 in May on a monthly basis.
The coincident economic indicator, reflecting current economic conditions, declined 0.4 points to 98.5 in the same period.
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