Semiconductor production in May fell 10% from the previous month, according to estimates. The decline was attributed to capacity reaching its limit and some weakening in demand. Consumption of vehicle fuel and cosmetics increased.
According to the "May 2026 industrial activity trends" that the Ministry of Data and Statistics (MODS) released on the 30th, last month's all-industry production index (seasonally adjusted, excluding agriculture, forestry and fisheries) was 117.7 (2020=100), down 0.3% from the previous month. It fell for the second straight month following the previous month's 0.4% drop.
Mining and manufacturing output fell 3.0% from the previous month as semiconductors (10%) and pharmaceuticals (17.5%) declined sharply. A Ministry of Data and Statistics (MODS) official said, "Semiconductors appear to have seen output decrease as production capacity nears its limit," adding, "The recent steep price increases curbed demand, which also contributed to a partial decline." On pharmaceuticals, the official explained, "It fell due to a base effect after three straight months of increases."
Service output rose 1.3%. Gains in finance and insurance (5.9%) on a buoyant stock market and in professional, science and technology (9.3%) on research and development (R&D) investment in the semiconductor industry contributed to the increase.
Consumption rose 0.1% from the previous month. Sales of durable goods such as passenger cars (3.4%) decreased, but sales increased for nondurable goods such as vehicle fuel and cosmetics (0.9%) and for semi-durable goods such as clothing (2.3%). A Ministry of Data and Statistics (MODS) official said, "Sales appear to have risen due to a base effect from weaker consumption in April and stronger spending during the May holidays," adding, "Increased demand for cosmetics also played a role."
Facility investment fell 0.1% from the previous month. Investment in transport equipment (0.2%), centered on automobiles, increased, but machinery such as semiconductor manufacturing equipment (0.2%) decreased, dragging down the total.
The coincident composite index cycle component, which reflects current economic conditions, fell 0.3 percentage points from the previous month. The leading composite index cycle component, which signals future economic phases, rose 0.7 percentage points.