In November, South Korea witnessed a notable decline in industrial output for the third consecutive month, primarily driven by a significant slowdown in the automobile sector. According to data released by Statistics Korea, industrial production decreased by 0.4% on a month-to-month basis and 0.3% compared to the same period last year. A key contributing factor to this downward trend has been labor strikes within the automobile industry.
Gong Mi-sook, an official from Statistics Korea, highlighted that these strikes, which took place between October and November, had a profound impact on the production of finished car components. This interruption in production not only hindered the automotive sector but also cascaded effects throughout related industries. Conversely, the production of semiconductors demonstrated resilience amidst these challenges, reflecting robust demand from overseas markets.
This growth in the semiconductor sector stands in stark contrast to the declining automotive output, indicating a bifurcation in South Korea's industrial landscape. Statistics Korea further reported that the manufacturing production index (PMI) experienced a slowdown, with a 0.7% reduction from the previous month, despite showing a slight increase of 0.3% year-over-year.
This month-on-month decline exceeded analysts' predictions, which had anticipated only a 0.4% slip as assessed through a Reuters poll. Additionally, the production capacity index witnessed a 0.2% decrease month-on-month, yet it recorded a yearly increase of 0.6%. This varied performance across sectors underscores the complexities of South Korea’s manufacturing resilience in the face of operational disruptions and changing global demands..