South Korea's domestic manufacturing supply declines in Q2

The downward trend is ongoing since 2023.

South Korea's domestic manufacturing supply decreased in the second quarter, data from Statistics Korea said. 

This marks the fourth consecutive quarter of decline, driven by decreases in both domestic production and imported manufacturing products.

The index of domestic manufacturing supply, which includes both locally produced and imported manufacturing products, dropped to 106.8 in the April-June quarter, down 2.2% from the previous year. This downward trend has been ongoing since the third quarter of 2023, sparking concerns about an economic slowdown.

Locally produced manufacturing products saw a 1.1% decrease in the second quarter compared to the previous year, particularly in sectors like cars and electronic communication devices. 

Imported manufacturing products also struggled, decreasing by 5.2% due to weaker demand for chemical products and electronic communication devices, marking the fifth consecutive quarter of decline.

The proportion of imports to the total domestic manufacturing supply remained unchanged at 27.7% in the second quarter of 2023. However, the domestic supply of intermediate goods, such as materials and components, saw a 3.9% decline in the second quarter. Consumer goods supply decreased by 2.2%, but capital goods supply grew by 3.8%.