South Korean manufacturers' domestic supply rose at a slower pace in the third quarter from three months earlier mainly because a shortage of auto chips dented vehicle production, data showed Tuesday.

The manufacturing domestic supply index stood at 105.3 in the July-September period, up 2 percent from a year earlier, according to the data from Statistics Korea.

The reading slowed from the second quarter when it grew at the fastest-ever on-year pace of 9.1 percent.

The index, which measures both locally produced goods and imports, serves as a major indicator of domestic demand trends.

Disruptions of the global supply of auto chips dented Korean automakers' output last quarter, hurting manufacturers' domestic supply, according to the statistics agency.

Despite the slowed growth, the index grew for the third straight quarter last quarter as the South Korean economy is on a recovery track on the back of exports.

In the third quarter, the increase in manufacturers' domestic supply was led by a sharp rise in imports, according to the agency. Imports for domestic supply grew 13.9 percent from a year earlier.

Facility investment by chipmakers remained robust amid increased imports of chipmaking parts and equipment in the third quarter, it added.

The index for consumer goods declined 1.1 percent on-year in the cited period, compared with a 2 percent gain three months ago.

The supply for capital goods -- which refers to machinery used in industrial sectors -- increased 5 percent from the previous year, compared with a 5.5 percent gain in the second quarter.

The supply of intermediate goods rose 2.5 percent on-year, slowing from a 13.5 percent increase three months earlier, the data showed. (Yonhap)