Key facts
- South Korea's industrial output fell 1.3% in August from the previous month.
- Mining and manufacturing output decreased by 4.8%, primarily due to the automobile industry.
- Retail sales declined 1.8% in August, with durable goods like cars leading the drop.
- Facility investment saw a sharp decrease of 9.5% in August compared to July.
- The service sector's output saw a modest increase of 0.5%.
South Korea's economy experienced a downturn in August, with industrial output, retail sales, and facility investment all declining, according to data released by the Ministry of Data and Statistics. Industrial production fell by 1.3% compared to the previous month. This decline was largely driven by a significant 4.8% drop in output from the mining and manufacturing sectors, with the automobile industry being a primary factor. In contrast, the service sector saw a slight increase of 0.5% in output. Consumer spending, as measured by retail sales, decreased by 1.8%, particularly affected by lower sales of durable goods such as cars. Facility investment also experienced a substantial plunge of 9.5% in August from a month earlier. This broad-based economic slowdown follows a previous report indicating that corporate direct financing had decreased in August due to lower stock and bond sales.