(2nd LD) industrial output-April

▲ An official from Statistics Korea holds a press breifing in the central city of Sejong on May 31, 2023. (Yonhap)

(2nd LD) industrial output-April

(2nd LD) Industrial output dips most in over 1 yr in April; inventories at record high

(ATTN: UPDATES with details throughout; CHANGES photo; CORRECTS para 6 with revised data from statistics agency)

By Kang Yoon-seung

SEJONG, May 31 (Yonhap) -- South Korea's industrial output dropped by the most in over a year in April due to an extended slump in the chipmaking sector, data showed Wednesday, with the inventory level at a fresh high.

Industrial output dropped 1.4 percent on-month last month, snapping two consecutive months of gains, and marked the sharpest drop since a 1.5 percent fall in February last year, according to the data from Statistics Korea.

The output in the mining, manufacturing, gas and electricity industries also fell 1.2 percent on-month in April, due to the falling production of machinery and pharmaceutical products.

From a year earlier, the production of automobiles moved up 16.6 percent, while that of semiconductors, the backbone of Asia's No. 4 economy, dropped 20.2 percent, according to the data.

The service output slid 0.3 percent on-month in April, as losses in the retail and wholesale sector offset gains in the finance and insurance segment.

The inventory level in the manufacturing sector reached 130.4 percent, up 13.2 percentage points on-month, reaching the highest level since the agency compiled related data in 1985.

The rise in the inventory was led mostly by the semiconductor and petroleum sectors.

"The current economic trend is facing significant challenges," an official from the agency said. "Overall, there are still significant uncertainties, largely dependent on the global recovery of the electronics and semiconductor sectors."

Retail sales, a gauge of private spending, decreased 2.3 percent on-month in April, amid higher inflation and borrowing costs.

Sales of semidurable goods, such as clothes, fell 6.3 percent on-month in April, with those of non-durable items, including foodstuffs, losing 1.2 percent.

The demand for durable goods, covering telecommunication devices and computers, fell 1.7 percent over the period.

Facility investment, meanwhile, gained 0.9 percent.

The growth was mainly led by the increase in the import volume of aircraft, with the daily average reaching US$20.8 million in April, rising sharply from $13.4 million tallied a month earlier.

"In April, the industrial output underwent a moderate adjustment after experiencing a recovery in the first quarter," the Ministry of Economy and Finance said in a separate report, noting the recovery continued except for some areas including the semiconductor industry.

"The government aims to strengthen the recovery momentum by prioritizing the revitalization of exports, investment, and domestic consumption while effectively managing risks in light of both positive and negative factors," it added.


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