Production, consumption, and investment all increased month-on-month last month, marking a "triple increase" for the first time in three months. In particular, total industrial production recorded its largest increase in 15 years and 6 months. This was due to the normalization of the automotive sector, which had previously affected overall production, consumption, and investment, following the end of an automobile strike and the conclusion of summer vacations.
According to the "Industrial Activity Trends for September 2026" (preliminary) released by the National Data Agency on the 30th, total industrial production increased by 3.0% month-on-month in September (same basis hereinafter). This is the largest increase since March 2011 (3.4%), a span of 15 years and 6 months. Year-on-year, it rose by 1.1%. Retail sales and equipment investment increased by 3.6% and 5.3%, respectively.
This marks another triple increase in three months, following the occurrence in June. After recording a triple decrease in August, all indicators turned to growth. This was due to the resolution of factors that had affected overall automobile production, retail sales, and investment during the concentrated summer vacation period in August.
An official from the Data Agency explained, "There were fluctuating factors as the declines in production, retail sales, and investment caused by the recent concentration of automotive summer vacations were resolved this month." The official added, "Large increases in semiconductor and automobile production led the overall rise in production, while retail sales and equipment investment turned to growth as temporary decline factors from the previous month eased."
Manufacturing and mining production increased by 9.0%, driven by rises in semiconductors (19.2%) and automobiles (39.9%), despite declines in medical, precision, and optical products (-8.8%). Specifically, semiconductor production recorded its largest increase in seven months since February (28.2%), as output of memory semiconductors such as DRAM and flash memory increased.
In the automobile sector, production increased by the largest margin in six years and 6 months since March 2020 (46.6%), driven by increases in new automotive parts and HYBE lead passenger car production.
Manufacturing production rose by 9.9% due to increases in automobiles and semiconductors. This is the largest increase in 17 years and 7 months since a 10.5% rise in February 2009. Service industry production increased by 0.5%, as gains in wholesale and retail (3.5%) and transportation and warehousing (3.6%) offset declines in association, repair, and personal services (-7.2%).
Retail sales, which represent goods consumption, increased by 3.6%, driven by rising sales across all categories: non-durable goods such as food and beverages (4.2%), durable goods such as passenger cars (4.4%), and semi-durable goods such as clothing (0.6%). Consumption is divided into goods consumption and service consumption, but the Industrial Activity Trends report covers only goods consumption.
Equipment investment increased by 5.3%, with rises in both machinery such as electrical equipment and devices (4.7%) and transportation equipment such as other transport gear (7.4%). Construction output increased by 5.8% as construction performance rose in both building (5.1%) and civil engineering (7.4%).
The cyclical variation of the Coincident Composite Index, which indicates current economic conditions, rose by 0.5 points to 102.2. The cyclical variation of the Leading Composite Index, which predicts future economic trends, fell by 0.1 point to 104.1. Declines in financial indicators such as the KOSPI and the long-short interest rate spread led the drop.
An official from the Ministry of Economy and Finance stated, "While month-on-month adjustments are expected for October due to the characteristics of monthly indicators, the trend of growth is projected to continue when considering leading indicators." The official added, "We will prioritize stabilizing cost-of-living prices as our top task, concentrate efforts on three core social policies—housing, employment, and finance for the underprivileged—and make every effort to identify tasks to address polarization that citizens can tangibly feel."
in ECONOMY
