South Korea industrial slump in Oct, but retail and services show resilience

Data from South Korea show a mixed picture: industrial output slumped sharply in October even as retail sales rose and service-sector output held up. According to the national statistics office,

• industrial production in October fell 8.1% year-on-year and 4.0% month-on-month (seasonally adjusted).
• By contrast, retail sales rose 3.5% month-on-month,
• while service-sector output slipped modestly by 0.6% month-on-month.

That weak industrial performance follows a rebound in September, when overall production rose 1.0% month-on-month (and 6.7% y/y), driven by a 1.8% increase in services — although retail sales dipped 0.1% in September. The divergence suggests private consumption and services remain more resilient than manufacturing, which may be weighed down by global demand softness or supply-chain headwinds.

—

The sharp drop in industrial output may weigh on export-linked assets and Korean equities, while softer manufacturing signals could dampen global supply-chain demand; stable retail and services may cushion domestic consumption risks.

This article was written by Eamonn Sheridan at investinglive.com.