Industrial output, retail sales, facility investment down in August
Summary
Korea’s industrial output fell 1.3 percent in August from a month earlier, while retail sales and facility investment also declined, the first triple drop since May. Mining and manufacturing output slipped 4.8 percent, led by a 24.8 percent drop in automobile production. The ministry said summer vacations were concentrated in August and July strikes at some automakers also weighed on output. Facility investment plunged 9.5 percent.
Key Facts
- Machinery production rose 3.1 percent in August from a month earlier, while output in the rubber and plastic industry fell 11 percent.
- The service sector output edged up 0.5 percent, with information and communication up 4.7 percent and wholesale and retail down 0.7 percent.
- Retail sales decreased 1.8 percent, with durable goods sales down 4.5 percent and nondurable goods sales down 1.6 percent.
- Investment in transportation equipment fell 32.8 percent, while machinery investment increased 1.6 percent.
Vehicles for export stand ready at Pyeongtaek Port in Gyeonggi Province, Sept. 16, 2025. Yonhap
Korea's industrial output lost ground in August from a month earlier, data showed Wednesday, with retail sales and facility investment also backtracking in a triple whammy for the first time since May.
Industrial production lost 1.3 percent from a month earlier in August, according to data from the Ministry of Data and Statistics.
Output in the mining and manufacturing sector, a key pillar of the economy, slipped 4.8 percent, due mainly to the automobile industry.
Machinery production rose 3.1 percent in August from a month earlier, while automobile production fell 24.8 percent due to reduced output of recreational vehicles.
It was the sharpest decline in automobile production since the 34.9 percent drop recorded in May 2020. The latest decline was apparently due to the summer vacation season and a strike.
"In July, (workers at some automakers) staged strikes, which partly affected output (in August)," said Lee Doo-won, a senior statistics official. "While summer vacations were previously spread across July and August, they were concentrated in August this year."
Lee added the sluggish automobile industry had affected overall production and consumption.
Output in the rubber and plastic industry fell 11 percent due to reduced tire production, the report showed.
The service sector output, on the other hand, edged up 0.5 percent.
Output in the information and communication sector rose 4.7 percent, while output in the wholesale and retail sector fell 0.7 percent.
Retail sales, a gauge of private spending, moved down 1.8 percent over the period, led mostly by durable goods, including cars.
Sales of semidurable goods, such as clothes, rose 0.4 percent, while sales of durable goods, such as cars, fell 4.5 percent, the report showed. Sales of nondurable goods, including cosmetics, slipped 1.6 percent.
Facility investment plunged 9.5 percent from a month earlier in August, the latest findings showed.
Investment in transportation equipment fell 32.8 percent, offsetting a 1.6 percent increase in machinery investment, the latest findings showed.
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