ANN/THE KOREA HERALD – South Korea’s manufacturing production dropped by more than four per cent year-on-year in January, marking the sharpest decline in 18 months, according to data released yesterday.
The Manufacturing Production Index stood at 103.7 points in January, a 4.2 per cent decrease compared to the same month last year, as reported by Statistics Korea.
This was the steepest annual decline since July 2023, when the index fell by 6.6 per cent.
The government attributed the slow manufacturing output to fewer business days in January, due to the extended Lunar New Year holiday. However, the report comes amid growing concerns about a prolonged economic slowdown.
In detail, shipments of manufacturing products declined 7.4 per cent on-year in January, posting the biggest drop in two years.
Domestic shipping sank 11.8 per cent, while overseas shipping edged down 1.2 per cent.
The South Korean manufacturing industry’s purchasing managers’ index also dropped to 49.9 points in February from 50.3 the previous month, according to leading financial researcher S&P Global.
A purchasing managers’ index reading below 50 represents contraction in the sector, while a reading above 50 represents expansion.
The Federation of Korean Industries has recently said the country’s manufacturing industry is facing an “unprecedented crisis”, calling on the government to provide support measures to bolster the competitiveness of the sector.
