Production, consumption, and investment all increased compared to the previous month, marking a 'triple growth' for three consecutive months since March. This is the second time in two months that all indicators have shown growth following the 'triple decline' recorded in April.
According to the 'June 2026 Industrial Activity Trends' released by the Korea Statistical Information Service on the 31st, total industrial production in June increased by 2.3% compared to the previous month (hereafter on the same basis). Compared to the same month last year, it rose by 4.2%. After declining for two consecutive months since April (-0.5%), it turned to growth. Retail sales and equipment investment also increased by 2.7% and 5.8%, respectively.
This is the second time this year that production, consumption, and investment have all increased, following March. In March, all three indicators grew for the first time in six months since September 2025.
Manufacturing production fell in sectors such as electronic components (-10.4%) but rose in automobiles (15.4%) and semiconductors (4.5%), resulting in a 6.4% increase overall. This is the highest growth rate since June 2020 (6.6%), marking the first time in six years. In particular, automobile production showed strong growth driven by increased output of finished vehicles such as HYBE-led sedans and RVs. Semiconductor production has been fluctuating month-to-month recently due to base effects and other factors.
A KOSIS official stated, "Supply and demand for automotive parts were extremely tight in March due to engine component fires, but with the normalization of parts supply and increased domestic and foreign demand, automobile production surged significantly." They added, "Semiconductor production increased by 4.5% in line with recent trends."
Service sector production declined in information and communications (-3.0%) but rose in finance and insurance (2.8%) and transportation and warehousing (2.0%), resulting in a 0.7% overall increase.
Retail sales, which indicate goods consumption, fell in semi-durable goods such as clothing (-1.7%) but increased in durable goods like automobiles (12.6%) and non-durable goods such as food and beverages (0.2%), leading to an overall 2.7% increase.
Equipment investment rose by 5.8%, with increases across machinery such as precision instruments (6.9%) and transportation equipment centered on automobiles (3.4%). Construction starts decreased in civil engineering (-1.3%) due to reduced project performance but increased in building construction (5.9%), resulting in a 4.1% overall increase.
The coincident composite index, which reflects the current economy, recorded a 0.5-point rise to 100.3. The leading composite index, which forecasts future economic trends, was compiled at 105.7, up 0.9 points.
in ECONOMY
