As the government and chaebols increase their dependence on US investment in the domestic economy, where investment is sharply declining, the economic slowdown continues, in which manufacturing shipments decrease and inventories rise.
Manufacturing shipments in April fell 2.3% MoM, while the manufacturing inventory ratio rose 2.8%P MoM to 117.2%.
In April, facility investment plummeted by 7.5% (from the previous month), and the negative streak increased for the third consecutive month.
The sharp decline in facility investment (-7.5%) is structural, as major semiconductor companies are limited in their introduction of semiconductor equipment, and facility investment is declining despite attempts to expand additional facilities.
The total industrial production index of the National Statistical Office was 116.4 (2015 = 100), down 0.7% from the previous month. returned to decline.
The decline in industrial production was led by semiconductors (-3.5%) and foodstuffs (-5.4%), leading to a 3.1% decline in manufacturing production, and a 0.2% increase in manufacturing inventories led by machinery and equipment, reflecting the recession.
As government support was limited, public administration decreased by -4.3%, and retail sales fell 0.2% despite easing quarantine measures.
Mining industry production decreased by 3.3%, and shipments decreased by 2.6% from the previous month, with shipments declining in both the mining manufacturing industry and the electricity and gas industry.
Manufacturing shipments fell sharply in chemicals (-4.3%), semiconductors (-3.6%) and foodstuffs (-5.3%), followed by automobiles (2.9%), electrical equipment (2.4%), clothing and furs (6.6%). etc increased.
The manufacturing inventory ratio in April was 117.2%, up 2.8%p from the previous month.
When Samsung and Hyundai Motor Company announce an investment worth 600 trillion won, investment in the United States comes first, followed by investment in Korea.
Deputy Prime Minister Choo Kyung-ho said on the 31st that "there is no way to force inflation down, and if it does, the adverse effect on the economy will be greater."
With the government's execution of the 62 trillion won supplementary budget on the 30th, the pressure on inflation due to the consumer stimulus is increasing, which has an adverse effect on the cycle structure of investment, production and consumption.