Prospects store for fruits at a grocery store in Seoul, Feb. 2. Yonhap
Korea’s retail gross sales, a key indicator of personal spending, fell by essentially the most in 21 years in 2024, marking the third consecutive yr of decline, regardless of strong industrial output, knowledge confirmed Monday.
Retail gross sales fell 2.2 % on-year as gross sales of each sturdy and nondurable items, notably meals, misplaced floor amid excessive inflationary strain, based on the info compiled by Statistics Korea.
It was the biggest annual decline since 2003, when retail gross sales fell 3.2 % on-year.
The downward pattern has now continued for 3 consecutive years, following a 0.3 % drop in 2022 and a 1.4 % decline in 2023.
„This marks the longest dropping streak since retail knowledge has been compiled,“ an company official mentioned, emphasizing that the figures point out sluggish home demand.
In distinction, industrial output elevated 1.7 % from a yr earlier in 2024, pushed by robust demand for semiconductors. This marks the third consecutive yr of progress.
Facility funding additionally rebounded, rising 4.1 % on-year in 2024, supported by elevated demand for semiconductor-related equipment, a pointy turnaround from a 5.5 % decline the earlier yr.
In December alone, industrial output rose 2.3 % from the earlier month on robust demand for semiconductors and vehicles. The on-month acquire follows three consecutive months of decline.
Nevertheless, retail gross sales dropped 0.6 % on-month, extending their dropping streak to 2 months, the company mentioned.
The weak efficiency was primarily pushed by a 6.7 % decline in gross sales of nondurable items, together with vehicles.
Facility funding rose 9.9 % from the earlier month in December, persevering with an total upward pattern. (Yonhap)
