Aerial view of Busan New Port (Busan Port Authority)

By Kim Seon Ah

Industrial production maintained its solid growth last month, with both facility investment and economic sentiment indicators rising and accelerating economic recovery.

The Ministry of Data and Statistics on Aug. 31 said in a report on July industrial trends that the all-industry production index, a seasonally adjusted indicator with a benchmark of 100 in 2020, maintained the stable level seen in June with 120.2.

Mining and industrial output including manufacturing inched up 0.2% driven by growth in electronic components (20.7%) and primary metals (4.2%). Production of semiconductors, a major export item, also continued its rise at 0.5%.

Facility investment, a key gauge of future growth, increased 7.5% for its second straight month of solid performance. Investment in transportation equipment grew a robust 15.4% including the acquisition of aircraft and ships and that in machinery 4.2%, centered on semiconductor manufacturing equipment.

The retail sales index fell 2.4% and service sector output dipped 1.3%.

Overall economic trends also showed positive signs. The cyclical component of the coincident composite index, which measures the state of the economy, rose eight-tenths of a point and that of the leading composite index, which forecasts the economy's direction, grew four-tenths of a point to raise expectations for improved economic conditions.

sofiakim218@korea.kr