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Industrial output unchanged, retail sales fall at sharpest rate in 18 months

Published: 30 Sep. 2025, 11:39 Updated: 30 Sep. 2025, 14:47

White steam rises from the Yeosu National Industrial Complex in Yeosu, South Jeolla, where petrochemical companies are concentrated, on Dec. 7, 2020. [YONHAP]

Korea's industrial production remained unchanged from a month earlier in August, while retail sales posted the sharpest on-month decline in 18 months, data showed Tuesday.

Retail sales, a gauge of private spending, went down 2.4 percent from a month earlier in August, marking the steepest on-month fall since February 2024, according to the data compiled by Statistics Korea.

It also was the first decline in four months.

Industrial output was flat compared with July, following gains in the previous two months.

Facility investment fell 1.1 percent in August, the data showed.

Retail sales of semidurable goods, such as apparel, rose 1 percent, while sales of nondurable goods, including cosmetics, lost 3.9 percent, and those of durable goods, such as home appliances, fell 1.6 percent.

"The relatively late Chuseok holiday likely shifted part of August's demand into September," an agency official said.

This year's Chuseok holiday will run from Oct. 5 to 8, more than two weeks later than last year.

"We expect consumption to pick up in September, supported by the second round of consumption coupons and spending related to the Chuseok holiday," he added.

Earlier this month, the government distributed the second and final round of cash handouts under a supplementary budget scheme aimed at stimulating private consumption and revitalizing the economy.

The latest round of "consumption coupons," worth 100,000 won ($71.36) each, was provided to the bottom 90 percent of the population by income. It followed the first round of universal cash support, which amounted to 150,000 won per person.

A 2.4 percent increase in the production of the mining and manufacturing sector, considered the backbone of the economy, was offset by a 0.7 percent fall in the service sector.

In the mining and manufacturing sector, automobile production surged 21.2 percent on-month, and that of medical products added 11 percent.

Such increases were partially offset by a 3.1 percent decline in semiconductor production.

Facility investment showed a mixed performance.

Investment in transportation equipment fell by 6 percent, offsetting gains in machinery investment, the data showed.

Yonhap