Production, consumption & investment on the rise in April

Seoul--(뉴스와이어)--Industrial Activity in April: Production, consumption and investment on the increase

April industrial activity points to a general increase trend in production, consumption and investment. Industrial activity is expected to continue the trend, albeit high oil prices and volatile foreign exchange.

1. Industrial production

Industrial production in April rose 9.5% on-year, continuing the trend increase that commenced in mid 2005. The increase during January-April posted 11.4%, higher than 10.3% growth in the previous quarter, matching the 2004 growth. It was the highest since 2000.

Shipments also stayed on an upward track. Inventory, which slowed down last year, edged up slightly in 2006.

Industrial production is expected to keep increasing in May as well, on the back of solid exports.

2. Consumption

Consumption in April edged up 52% on-year despite sluggish car sales which dropped 8.5% on-month, indicating a trend increase.

Preliminary consumption indicators imply recovery in consumption gaining momentum in May, too.

3. Investment

[Facility investment]

Estimated facility investment in April recorded an increase of 7.3% on-year. Investment in special industrial machinery, precision machinery and computers is on the rise. Also, retail and wholesale orders climbed on the back of rebounding domestic demand.

Given the trend movement of leading indicators, facility investment is likely to continue its current trend.

[Construction investment]

Construction projects completed (current) posted a small growth due to sluggishness in the private sector. Leading indicators including construction orders fell.

3. Composite business index

Coincident composite index (CCI), an indicator of current economic status, fell 0.5 point on-month due to a decrease in manufacturing operation ratio and domestic shipments.

Leading composite index (LCI) edged down 0.7%p on-year.

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