S Korea’s industrial output growth hits 15-year high, driven by semiconductor production

Industrial output rose 3 percent month on month, marking the strongest increase since March 2011, when production grew by 3.4 percent. September also marked the first time since June that all three major economic indicators - industrial production, retail sales and facility investment - increased simultaneously.

Mining and manufacturing output surged 9 percent, largely supported by a 19.2 percent increase in semiconductor production. The growth in chip manufacturing was the highest since February, reflecting stronger production of memory chips, particularly dynamic random-access memory (DRAM).

Automobile production also recorded significant growth, jumping 39.9 percent as manufacturers increased output of auto parts and hybrid vehicles. The recovery followed the end of strikes at local carmakers and the summer holiday season. Meanwhile, production of medical, precision and optical instruments declined 8.8 percent.

Service-sector output increased 0.5 percent, supported by growth in wholesale and retail trade, as well as transportation and storage services.

Retail sales, an indicator of private consumption, rose 3.6 percent in September. Sales increased across all major categories, with durable goods recording the strongest growth at 4.4 percent, driven by higher demand for automobiles. Sales of nondurable and semidurable goods grew by 4.2 percent and 0.6 percent, respectively.

Facility investment also gained momentum, rising 5.3 percent month on month. Investment in machinery increased 4.7 percent, while investment in transportation equipment grew 7.4 percent.

Earlier, Qazinform reported South Korea’s births rose 13% in August to the highest level in seven years.