Industrial output flat in July in S. Korea, retail sales down

Seoul, Aug 31 (IANS) South Korea’s industrial output remained flat in July from a month earlier due to a base effect and a strike in the automobile industry, data showed on Monday, while retail sales lost ground and facility investment advanced.

Industrial production remained unchanged in July from a month earlier, according to data from the Ministry of Data and Statistics.

Industrial output fell 0.5 percent and 0.4 percent in April and May, respectively, before rebounding 2.4 percent in June, reports Yonhap news agency.

Output in the mining and manufacturing sector, a key pillar of the economy, edged up 0.2 percent on the back of the electronic component segment, which increased 20.7 percent. The output in the automobile industry, on the other hand, fell 4.5 percent.

Semiconductor output also edged up 0.5 percent. “Production of electronic components rose significantly following the release of new smartphones by Samsung Electronics,” Lee Doo-won, a senior statistics official, said.

“The automobile industry, on the other hand, apparently saw a decline due to a base effect from the previous month’s increase, as well as a strike at Hyundai Motor,” he added.

Service sector output, however, contracted 1.3 percent from a month earlier in July. It was the sharpest drop since 1.7 percent posted in February 2022, apparently due to high consumer prices and a heat wave.

Output in the information and communication segment rose 3.5 percent, while that in the finance and insurance segment decreased 4.8 percent.

“(The decrease in the finance industry) was due to lower stock market turnover,” Lee pointed out.

Retail sales, a gauge of private spending, fell 2.4 percent over the period, led mainly by a decline in durable goods, including cars, amid high consumer prices.

The report showed that sales of semidurable goods, such as clothes, fell 1.4 percent, while sales of durable goods slid 7.7 percent. Sales of nondurable goods, including cosmetics, slipped 0.1 percent.

Facility investment shot up 7.5 percent in July from a month earlier, the latest findings showed.

It marked the largest growth since the 15 percent surge posted in February.

The report showed investment in transportation equipment rose 15.4 percent, led by ships and aircraft, while spending on machinery, including semiconductor production equipment, increased 4.2 percent.

In a separate report, the Ministry of Finance and Economy said it was notable that South Korea posted growth in mining and manufacturing output for two straight months, supported by robust exports.

—IANS

na/