South Korea’s factory output observed a 5.1 percent rise in March. Statistics Korea, the official statistics generator of South Korea, released data on Friday. The data showed automobile, semiconductor, and other productions had risen last month.
In the newly released data, the factory output of March came out higher than the previous month, i.e., February. On the contrary, February was the month when the country witnessed a 2.7% fall in industrial outcomes. South Korea’s overall factory output is also higher than the previous three years. This is the most rapid monthly increase since June 2020.
In March 2023, the manufacturing of semiconductors grew exponentially by 35.1 percent. While automobile production boosted by 6.5 percent in South Korea. Both semiconductor and automobile productions are the highest contributors to the recent factory output growth.
The finance and insurance industry rose by almost 1.8 percent in March. At the same time, the service industry witnessed a 0.2 percent climb in output. Likewise, the quantity of private spending and retail sales has jumped up by 0.4 percent.
The demand for certain communities such as fuels and electronics is more frequent than before. For the first time since 2021, private spending, industrial output and facility investment, has multiplied. There has been a significant increase in these three in last two months.
The output in the manufacturing, mining, and electricity industries has gone upward. This growth is mostly on the back of the semiconductor industry. However, semiconductor production has decreased by 26.8 percent in comparison to the previous year.
South Korea’s facility investment on the other hand has declined by 2.2 percent. Its majorly due to slow performance by the ship industry over the period. The factory output of this year was lesser than in March of 2022. It has reduced by a total of 7.6 percent this year.
The output status is also lower for communication and broadcasting devices. There has been 31.5 percent less production by factories.
Recession recovery with semiconductor
According to Statistics Korea, the semiconductor industry continues to see downward trends. One such instance is with Samsung Group. The Seoul-based electronics manufacturer decided to curtail semiconductor production. The reason being the plunging losses in early April this year.
It is still early to determine the future outcomes. It’s difficult to dissect if South Korean economy has embarked on a complete recession recovery phase. According to the finance ministry, the industrial output is going to go through ups and downs this year and later. The pace of recovery will be mostly dependent on the exports of crucial IT products like semiconductors.