Construction performance in October this year fell by the largest margin on record. In addition to poor market conditions, the Chuseok holiday reduced the number of working days. By contrast, consumption indicators rebounded for the first time in three months due to Chuseok and the distribution of livelihood recovery consumer coupons.
According to the Industrial Activity Trends for October 2025 released by the National Data Office on the 28th, last month's all-industry production index (seasonally adjusted, excluding agriculture, forestry, and fisheries) was 112.9 (2020=100), down 2.5% from the previous month. It turned to a decline in one month after September (1.3%), marking the largest drop since February 2020 (-2.9%). In particular, it fell across mining and manufacturing, construction, and services.
Mining and manufacturing output fell 4.0% from the previous month as semiconductors (-26.5%) and electronic components (-9.0%) declined sharply. Automobiles rose 8.6%, but that was not enough to offset the decline. However, Deputy Director General Lee Du-won of the National Data Office said, "The semiconductor production index fell in October due to about a 20% price increase, and the semiconductor market itself is showing a solid trend," adding it was "a temporary base effect."
Service output also fell 0.6% from the previous month. While wholesale and retail, business facilities management, business support, and leasing were weak, health and social welfare, and arts, sports, and leisure saw slight improvements.
Consumption improved for the first time in three months. Although retail sales fell 4.9% for durable goods such as passenger cars, they rose 3.5% from the previous month as sales increased for nondurables such as food and beverages (7.0%) and semi-durables such as clothing (5.1%). The National Data Office analyzed that the increase was driven by the Chuseok holiday and the distribution of livelihood recovery consumer coupons.
Investment contracted sharply. Facility investment fell 14.1% from the previous month as both machinery (-12.2%) and transport equipment (-18.4%) decreased. It was the largest decline since January this year (-17.2%).
Construction completed (constant prices) also fell 20.9% from the previous month due to decreased performance in building construction (-23.0%) and civil engineering (-15.1%). This is the largest drop since statistics began in July 1997. The Deputy Director General said, "The construction market is not good," adding, "Even with seasonal adjustment, it was affected by a decrease in actual working days due to the Chuseok holiday."
Business cycle indicators also showed a slowing trend. The coincident index of cyclical variation, which reflects the current economic flow, was 99.0, down 0.4 percentage point (p) from the previous month. However, the leading index of cyclical variation, which signals future economic conditions, was similar to the previous month.