S. Korea's industrial output falls in March over COVID-19

Source: Xinhua | 2020-04-30

South Korea's industrial output dropped last month as the COVID-19 outbreak roiled the services industry, statistical office data showed Wednesday.

The seasonally adjusted production in all industries, which excludes the agricultural, forestry and fishery sectors, fell 0.3 percent in March from the previous month, according to Statistics Korea.

The output from the services industry tumbled 4.4 percent in March, after shrinking 3.5 percent in February.

It was the biggest monthly slide since the data began to be compiled in 2000, as people refrained from outside activity such as shopping, traveling and eating out amid the social-distancing campaign to contain the viral spread.

Output in the lodging and eatery industry plunged 17.7 percent in March from a month earlier, and production in the transport and warehousing sector diminished 9.0 percent.

Production in the culture and leisure sector dropped 31.2 percent, and output in the wholesale and retail industry slipped 3.3 percent.

Output in the mining and manufacturing industry gained 4.6 percent in March from a month earlier, after retreating 3.8 percent in the previous month.

In February, production in the manufacturing sector declined as the coronavirus pandemic disrupted the supply of auto parts from China.

In March, automotive production jumped 45.1 percent compared with a year earlier, and electronic parts production increased 12.7 percent on solid demand for display panels.

Output among manufacturers grew 4.6 percent last month, and production in the electric and natural gas industry added 1.3 percent in the month.

Shipment from manufacturers expanded 6.4 percent in March on a monthly basis due to brisk activities in the auto, the semiconductor and the electronic parts sectors.

Inventory among manufacturers lost 0.6 percent in the month, sending the ratio of inventory to shipment to 110.9 percent that was down 7.8 percentage points from the previous month.

Manufacturers posted an average capacity ratio of 74.1 percent in March, up 3.4 percentage points from the prior month.

Retail sale, which reflects private consumption, dipped 1.0 percent in March from a month earlier.

The sale of durable goods rose in double figures on passenger vehicle demand, caused by a temporary consumption cut, but the sale of semi- and non-durable goods slumped 11.9 percent and 4.4 percent each.

Sale by duty-free shops plummeted 48.8 percent, and those by department stores and discount outlets retreated 36.9 percent and 8.5 percent respectively.

Facility investment grew 7.9 percent in March from a month earlier, and completed construction rose 2.6 percent.

The cyclical factor for leading economic indicators, which measure the outlook for future economic situations, fell 0.6 points in March from the previous month, marking the biggest monthly slide in about 12 years since February 2008.

The figure for coincident indicators dipped 1.2 points last month, the biggest monthly decline in over 11 years since December 2008.

For the January-March quarter, the industrial output contracted 1.2 percent compared with the previous quarter. It was the first decline in four quarters.

The retail sale diminished 6.4 percent during the first quarter, and facility investment was down 3.5 percent.