South Korea’s Industrial Output, Retail Sales and Facility Investment Fall in August

  • South Korea’s output, retail sales and facility investment all fell in August.
  • Automobile production declined 24.8%, while all-industry output dropped 1.3%.
  • The government expects automobile production and major indicators to recover in September.

South Korea’s industrial output, retail sales and facility investment all fell in August, the first simultaneous decline across the three measures in three months. All-industry output dropped 1.3% from July, extending a 0.1% decrease a month earlier, as mining and manufacturing output fell 4.8% and automobile production plunged 24.8%. Retail sales declined 1.8% for a second month and facility investment fell 9.5%, although services output rose 0.5% and construction completed increased 1.9%. The government attributed the weakness largely to concentrated auto-sector holidays, strikes at some automakers, and base effects from earlier vehicle, appliance, ship and aircraft purchases. It expects auto production and other major indicators to rebound in September.

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