Industrial output flat in July as consumption falls and facility investment rises 7.5%

[Financial News] Industrial production in July remained at the same level as the previous month. Consumption turned lower, but facility investment rose by more than 7%, extending a sharp increase for a second straight month.
According to the July Industrial Activity Trends released on the 31st by the Ministry of Data and Statistics, overall industrial production was unchanged from the previous month. The ministry said the figure likely reflected a correction after a 2.4% increase in June.
Mining and manufacturing output rose 0.2% from a month earlier. Production fell in automobiles (-4.5%), but increased in electronic components (20.7%) and primary metals (4.2%).
Service-sector output fell 1.3% from the previous month. That marked the steepest decline in four years and five months.
Information and communications rose 3.5% from a month earlier, but financial and insurance services fell 4.8% as stock trading volume and transaction value declined, dragging down overall service-sector output.
Consumption fell 2.4% from the previous month. Retail sales had risen in June, but turned lower again in July.
By category, sales declined across all segments, including durable goods such as passenger cars (-7.7%), semi-durable goods such as clothing (-1.4%), and non-durable goods such as cosmetics (-0.1%).
By contrast, facility investment rose 7.5% from the previous month. After a 6.9% increase in June, it posted a strong gain for a second consecutive month. The increase was driven largely by a 15.4% rise in transportation equipment investment, boosted by higher spending on ships and aircraft. Investment in machinery, including semiconductor manufacturing equipment, also rose 4.2%.
Construction completed, which reflects domestic construction work by builders, fell 1.1% from the previous month in constant terms.
The coincident composite index, which shows the current state of the economy, rose 0.8 points from the previous month. The leading composite index, which signals future economic trends, increased 0.4 points.
Lee Doo-won, Director General for Economic Trend Statistics Review at the Ministry of Data and Statistics, said, "Production and consumption in July were adjusted after the sharp increase in the previous month." He added, "Retail sales, in particular, saw a wider decline as promotional events such as Onnuri Gift Certificate campaigns ended." He also noted, "Facility investment continued to rise," and "Construction completed reversed to a decline after increasing for two months."
[email protected] Kim Chan-mi Reporter