Economic downturn obvious

Statistical indicators show that the economy is increasingly slowing down. The growth rates of various real-economy indicators such as industrial production, shipment and consumption and the operation ratio of manufacturing companies sharply declined last month.

According to statistics announced by the National Statistical Office (NSO) Wednesday, industrial production increased 11.5 percent last month from a month earlier, recording the lowest monthly growth rate since February last year, which saw a growth rate of 5.1 percent. The figure marks a 0.4-percent decrease from September. Consequently, the average operation ratio of the manufacturing industry fell to 76.4 percent in October, 1.7 percentage points lower than the previous month. It is the lowest level in six months since the 76.3 percent registered in April.

Worsening consumer sentiment and the slump in the construction market are also obvious. The wholesale and retail trade in October registered only a 4.9-percent rise compared to the same month last year, recording the lowest growth rate since the 3.4 percent recorded for January last year. Particularly, the shipment of domestic consumer goods declined 0.1 percent from the same period last year, falling for the second month in a row. Sales of cars and department store goods were particularly small.

Hardest-hit by the economic downturn is the construction market. The value of orders received by domestic construction companies decreased 16.8 percent from the same period last year, recording a decline for the second consecutive month. The amount of land permitted for construction projects also dropped 7.5 percent for the first time since March last year. The number of projects to build houses, schools and hospitals fell drastically.

However, on the back of expanded investment in the information and communication sector, facilities investments increased 20.3 percent, exceeding the growth rate of 18.6 percent reported in September. Investments in the computer and communication equipment sectors increased 67.9 percent and 82.4 percent, respectively.