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| ▲ An official from Statistics Korea holds a briefing on South Korea's monthly industrial output report in the central city of Sejong on June 30, 2023. (Yonhap) |
(2nd LD) industrial output-May
(2nd LD) Industrial output up in May, along with private spending, facility investment
(ATTN: RECASTS headline; UPDATES with details throughout; ADDS photo)
By Kang Yoon-seung
SEJONG, June 30 (Yonhap) -- South Korea's industrial output rose 1.3 percent in May from a month earlier, data showed Friday, with retail sales and facility investment gaining ground as well.
The latest growth marks a sharp turnaround from a 1.3 percent on-month drop tallied in April, according to the data from Statistics Korea. It was also the sharpest growth since March 2022.
The output in the mining, manufacturing, gas and electricity industries moved up 3.2 percent over the period on the back of the robust performance of the automobile and chip segments, which advanced 8.7 percent and 4.4 percent, respectively, the data showed.
The agency noted that the latest figures do not necessarily indicate a definitive recovery path for the chip industry, as there are no signs of a significant rebound in its exports.
The service output, however, edged down 0.1 percent over the period, as losses from the finance, insurance, accommodation and restaurant sectors offset gains from the science and technology segments.
Retail sales, a gauge of private spending, edged up 0.4 percent on-month, as people spent more on durable goods, such as home appliances, following the warmer-than-average weather conditions in the month, with the sector rising 0.5 percent.
Sales of semidurable goods, such as clothes, or non-durable items, including food, also edged up 0.6 percent and 0.2 percent, respectively.
Facility investment, meanwhile, gained 3.5 percent.
The growth was mainly led by the machinery and aircraft segments, which advanced 2.6 percent and 6.2 percent over the period, respectively.
It was the first time since February for South Korea's industry output, retail sales, and facility investment to advance on-month simultaneously.
"There are, however, still uncertainties, depending on the recovery timeline of the information and technology industry, along with the economic situation of advanced nations," an official from the agency said.
In a separate report, the finance ministry also said uncertainties will linger despite signs of eased downward pressure.
"There are positive factors in terms of production, including the rebound of the IT sector in the second half, and the anticipated impact from China's reopening, along with normalized face-to-face activities," the Ministry of Economy and Finance said.
"However, the prolonged uncertainties in the global economy following monetary tightening moves, and the large inventories in the semiconductor industry may also be a burden," it added.
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