Despite the Middle East War, production, consumption and investment all rose in March; April outlook remains uncertain

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[The Financial News]  In March, when the effects of high oil prices and supply chain disruptions caused by the Middle East War began to take hold, production, consumption and investment all increased. It was the first 'triple increase' in six months, since September 2025. A slowdown in production and consumption caused by higher oil prices and tighter raw material supplies from the Middle East War is expected to become visible in April data.
On the 30th, the Ministry of Data and Statistics said in its March industrial activity report that all-industry production rose 0.3% from the previous month, as output increased in services (1.4%) and mining and manufacturing (0.3%).
All-industry production had risen 1.2% in December last year, then fell 0.8% in January. After increasing 2.1% in February, it rose for a second straight month.
However, semiconductor production, which has been posting record profits, fell 8.1% from the previous month. Output rose in automobiles (7.8%) and other transport equipment (12.3%). Petroleum refining also declined.
Service-sector production increased 1.4% from the previous month. Output rose in finance and insurance (4.6%) and transportation and storage (3.9%).
Retail sales, a key domestic demand indicator, rose 1.8% from the previous month as sales of communications devices, computers and home appliances increased. By contrast, sales of nondurable goods such as food and beverages fell 1.3%.
Facility investment increased 1.5% from the previous month, as investment in transport equipment rose even though machinery investment declined.
Construction work completed, which measures domestic construction performance by builders, fell 7.3% from the previous month. The decline reflected lower project performance in both civil engineering (-13.7%) and building construction (-4.5%).
Looking at the first quarter, production, consumption and investment all increased.
All-industry production rose 2.8% from a year earlier.
Over the same period, facility investment increased 9.5% as spending on semiconductors, automobiles and machinery rose.
The coincident composite index cyclical component, which reflects the current economic situation, rose 0.5 points from the previous month. The leading composite index cyclical component, which signals future economic conditions, gained 0.7 points.
skjung@fnnews.com Jung Sang-gyun Reporter