SEOUL, Jan. 31 (Xinhua) -- South Korea's manufacturing output fell the most in 25 years last year mainly due to reduced semiconductor production, statistical office data showed Wednesday.
The seasonally-adjusted production index in all industries, which exclude the agriculture, livestock and fishery sector, rose 0.7 percent in 2023 compared to the previous year, according to Statistics Korea.
The industrial output kept growing for the third consecutive year, but production in the manufacturing sector logged the fastest reduction since 1998 when the effect of the foreign exchange crisis roiled the Asian economy.
Output among manufacturers tumbled 3.9 percent last year on a sharp fall in semiconductor production that dived 5.3 percent and turned downward in 22 years since 2001.
Manufacturers recorded an average capacity ratio of 71.3 percent in 2023, down 3.5 percentage points from a year earlier.
Output in the services industry went up 2.9 percent in 2023 after advancing 5.0 percent in 2021 and 6.7 percent in 2022.
Production in the construction industry expanded by 7.7 percent, but output in the public administration sector reduced by 2.1 percent last year.
The seasonally-adjusted retail sale index, which reflects private consumption, retreated 1.4 percent last year due to weaker demand for non-durable and semi-durable goods such as food and clothing.
Facility investment diminished 5.5 percent last year, and machinery orders declined 3.2 percent.
Completed construction increased by 7.7 percent in 2023, but construction orders went down by 19.1 percent.
The cyclical variation factor for leading economic indicators, which gauges the outlook for future economic situations, was up 0.1 points to 100.0 in December compared to the previous month.
The reading for coincident economic indicators, which measures the current economic condition, slipped 0.3 points to 98.6 in the cited month. ■
