The average utilization rate in the manufacturing industry also fell… Manufacturing production declines for the first time in 7 months
In April, the manufacturing capacity index fell to the lowest level in a year and eight months.
The manufacturing capacity index is an index indicating the maximum output that can be achieved assuming normal operating conditions such as facilities and manpower, raising concerns that the growth engine of the Korean manufacturing industry is lagging behind.
According to the National Statistical Portal (KOSIS) of Statistics Korea on the 1st, the manufacturing capacity index in April was 105.0 (2015 = 100), down 0.4% from the previous month.
This is the lowest level in one year and eight months since August 2020 (104.6), when the second COVID-19 pandemic occurred.
An official from the National Statistical Office said, “The drop in the production capacity index means that much more production was possible in the past, but that much production did not take place this month (April).” may have lowered production,” he explained.
By month, the production capacity index recorded 105.1 in January and February of this year, and seemed to rise to 105.4 in March, but fell to 105.0 in April.
By industry, production capacity fell mainly in electronic parts (-2.1%), food (-2.1%), and metal processing (-1.6%).
The manufacturing utilization rate index (103.5) also fell 1.6% from the previous month.
The manufacturing average utilization rate was 77.0%, down 1.3 percentage points from the previous month, the lowest level in five months since November last year (75.1%).
Manufacturing production itself also decreased by 3.1%, returning to a downward trend for the first time in seven months.
The problem is that the manufacturing industry accounts for the largest share of wage-earning jobs in Korea.
According to Statistics Korea, as of the fourth quarter of last year, 21.1% (4.2 million) of wage-earning jobs were in the manufacturing industry.
If the manufacturing industry slows down, employment as well as the economy itself will inevitably falter.
In the midst of this, as concerns regarding global inflation (inflation) increase, raw material prices rise, and supply chain disruptions continue, economic uncertainty is increasing.
Production, consumption and investment in April fell simultaneously for the first time in 26 months since February 2020.
The coincident index, which indicates the current economy, fell 0.3 points (p) from the previous month to 102.1, and the cyclical value of the leading index, which predicts the economy, fell 0.3 points (p) to 99.3, continuing the downward trend for 10 consecutive months.
/yunhap news