S Korean industrial output sees significant amid weak global demand and US tariffs
Seoul, June 30 (UNI) South Korea's industrial output declined for a second consecutive month in May, as weakening global demand and the impact of US trade restrictions continued to weigh on key sectors of the economy, hampering Seoul's economic growth significantly.
According to data released by Statistics Korea on Monday, the seasonally adjusted industrial production index — excluding agriculture, livestock, and fisheries — fell by 1.1% in May from the previous month, following a 0.8% drop in April.
Manufacturing, a core component of the economy, contracted sharply by 3% in May, compared to a 0.6% decline the month before.
Officials linked the downturn to a fall in overseas demand for Korean-made goods, partly due to protectionist policies and tariffs imposed by the United States.
The average manufacturing capacity utilisation rate also fell to 71.7%, down 2.1 percentage points from April.
The construction sector also showed weakness, with output dropping 3.9% in May after a 1.4% slide in April.
The service industry, which had remained relatively stable, slipped by 0.1%. In contrast, public administration output rose by 0.8%, driven by increased government activity.
Consumer spending remained stagnant. The retail sales index, a key indicator of private consumption, was unchanged in May, following a 0.9% decline in April. Meanwhile, facility investment — which reflects business spending on equipment — dropped 4.7%, extending its downward trend for the third straight month.
Leading indicators, used to gauge future economic momentum, edged down 0.1 points to 100.9 in May, while the index of coincident indicators, which reflects current economic conditions, decreased by 0.4 points to 98.5.
The sustained downturn in industrial activity highlights the strong challenges faced by South Korea, whose economy is heavily export-dependent. With a slowing global economy, tighter trade conditions, and cautious consumer spending at home, South Korea's growth outlook remains under significant pressure.
As of late June, the Korean won traded around 1,390 to the US dollar, increasing import costs and adding to inflation concerns.
UNI ANV AAB
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
South Korean auto parts delegation visits US to explore investment opportunities
The Korea Trade-Investment Promotion Agency (KOTRA) said on Monday it has dispatched an auto parts delegation to the US state of Georgia to help domestic manufacturers explore investment opportunities amid rising protectionist trade measures from Washington. Jointly organised by the Gyeonggi Province government , the auto parts investment delegation visited the cities of Atlanta and Savannah for three days from Wednesday, with 10 South Korean auto parts firms participating. The programme included investment seminars, consultations with Georgia state officials and on-site visits to existing South Korean manufacturing operations, including Hyundai Motor Group Metaplant America , which was completed in March, reports Yonhap news agency. Georgia has emerged as a major hub for Korean automakers, including Hyundai Motor Co. and Kia Corp., whose large-scale investments in the region have encouraged related auto parts suppliers to follow suit. "We will continue to work with both domestic and international partners to help resolve investment challenges and support our companies' global expansion," a KOTRA official said. Meanwhile, industry Minister nominee Kim Jung-kwan said on Monday he will put in "utmost" efforts to safeguard "national interests" in South Korea's tariff negotiations with the United States and support Korean companies' exports amid global trade uncertainties . "I want to be at the forefront of South Korea's exports ... and help the country overcome difficult times and turn a crisis into an opportunity," Kim told reporters as he headed to his office for parliamentary confirmation hearing preparations. With regard to the anticipated trade negotiations with the U.S. Donald Trump administration, Kim said he will work with Trade Minister Yeo Han-koo to secure a tariff agreement based on "national interests," noting he understands the difficulties Korean companies face in the global market. Kim was serving as a president in charge of marketing at Doosan Enerbility Co., a major Korean power equipment builder, before he was tapped as the Lee Jae Myung administration's first industry minister. Under his leadership, Doosan Enerbility has strengthened its presence in the global nuclear energy market, contributing to the successful bid for the Dukovany nuclear power plant project in the Czech Republic. On Lee's campaign pledge to establish a new ministry in charge of climate and energy policies, the nominee said "industry and energy are inseparable."
United News of India
44 minutes ago
- United News of India
'Head back home to South Africa': Trump to Musk
Washington, July 1 (UNI) Following criticism by Tesla chief over sweeping tax-cut and spending bill, US President Donald Trump on Tuesday said that without government subsidies, US entrepreneur Elon Musk would be forced to "close up shop and head back home to South Africa". "Electric cars are fine, but not everyone should be forced to own one. Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa," Trump said on Truth Social. Trump further suggested that ending support for rocket launches, satellites and electric car production would save the United States "a fortune." He further suggested that the US Department of Government Efficiency (DOGE), previously headed by Musk, "take a good, hard, look at this?" The lower house of the US Congress in May advanced Trump's "One Big Beautiful Bill," which cuts federal spending but simultaneously provides serious tax breaks. As a result, according to the Congressional Budget Office, both the budget deficit and the national debt will grow. Despite divisions within the party about its expected $3.3 trillion hit to the nation's debt pile, Senators have voted in a marathon session known as a "vote-a-rama." Musk has repeatedly criticized Trump's bill on social media. He said, in particular, that the bill would drive the US's budget deficit up to $2.5 trillion and push American citizens into debt. "It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS that we live in a one-party country – the PORKY PIG PARTY!!Time for a new political party that actually cares about the people," Musk wrote on X. "Anyone who campaigned on the PROMISE of REDUCING SPENDING, but continues to vote on the BIGGEST DEBT ceiling increase in HISTORY will see their face on this poster in the primary next year," Musk posted on X. He went on to argue that the bill proves Democrats and Republicans are part of a single "PORKY PIG PARTY" that prioritizes reckless spending over the interests of ordinary Americans. According to analysts, the United States may be on the verge of default by August if Republicans and Democrats in Congress do not agree on raising the debt ceiling. The issue of raising the borrowing limit has often been used in political disputes within Congress between the two US parties in recent years. UNI AAB GNK 1326
Mint
an hour ago
- Mint
Donald Trump Tariff Effect: Prices of China-made items sold in US outpaced core inflation since May, says report
A recent analysis conducted by 1,400 products has shown that China-made goods that are sold in the United States are seeing a hike that's faster than the overall inflation in the country. According to a report by Reuters, citing an exclusive analysis by DataWeave, the rise in the prices of the Chinese products show a sign that tariffs are starting to hit American consumers. As per the analysis, the prices of China-made products in the US on started to rise in May, a month after Donald Trump announced his sweeping tariffs, indicating that they have begun trickling down to the consumer. The median price of a basket of more than 1,400 items made in China and sold on to US buyers has gone up by 2.6 per cent between January and mid-June, outpacing the latest US inflation rate for core goods, which runs only through May. The price increases vary from item to item, and in some cases they have also declined, the report noted. For the six months through May, core goods CPI - which excludes services - rose by 1 per cent, implying a 2 per cent annualised rate. Both the federal data and DataWeave's study show that goods costs have trended upward in the last couple of months as tariffs begin to exert pressure on prices. The analysis was done on 25,000 items, focusing on 1,407 products sold on Amazon whose country of origin was China, and took into account the median prices of these items. As per the Reuters report, goods that saw the sharpest price hikes include — school and office supplies, electronic items such as printers and shredders, blank media items like CDs and DVDs, and home goods such as furnishings and cookware. China is a big global supplier of all these items. Of the 1,407 items tracked in the DataWeave study between January and June 17, 475 showed price increases, 633 remained unchanged, and 299 saw price declines. For example, a Hamilton Beach electric kettle climbed to a median $73.21 from $49.99, while the price of a GreenPan frying pan more than doubled to $31.99. Through April, inflation across that product group remained modest. Prices increased more sharply in May and accelerated into June, particularly in the Home & Furniture and Electronics categories, which showed a median increase of 3.5 per cent and 3.1 per cent, respectively, over the time frame of the study.
