Wed, 17 Aug 2022

SEOUL, June 30 (Xinhua) -- South Korea's industrial output and corporate investment rebounded last month despite lingering external uncertainties, such as supply chain disruptions, statistical office data showed on Thursday.

The seasonally-adjusted production in all industries, which exclude the agriculture, forestry and fishery sector, gained 0.8 percent in May from the previous month, according to Statistics Korea.

After expanding 1.6 percent in March, the industrial production declined 0.9 percent in April before rebounding last month.

Fluctuations in industrial output came from external uncertainties, such as supply chain disruptions and geopolitical risks in Europe.

Global inflationary pressures mounted sharply, prompting central banks in major economies to raise interest rates at a faster pace than forecast and causing worries about global economic recession.

Production in the services industry grew by 1.1 percent in May from a month earlier, continuing an upward momentum for the third consecutive month as the government lifted all social-distancing rules against the COVID-19 pandemic except an indoor mask mandate.

Output in the arts, sports and leisure, the eatery and lodging, the transport and warehouse, and the wholesale and retail sectors rose in single digits last month on the back of the increased outside activity.

Production in the mining and manufacturing industry added 0.1 percent in May after diminishing 3.3 percent in the previous month.

Manufacturers logged a capacity utilization rate of 75.7 percent in May, down 1.0 percentage point from the previous month.

Output in machinery equipment, medical supplies and automobiles went up last month, but electronic parts output tumbled 13.8 percent on expectations for the reduced sale of smartphones.

Facility investment surged 13.0 percent in May on a monthly basis, after skidding 5.6 percent in February, 2.3 percent in March and 7.6 percent in April respectively.

Investment in machinery and transport equipment advanced in double figures, and completed construction climbed 5.9 percent.

Retail sale, which reflects private consumption, edged down by 0.1 percent in May, keeping a downward trend for the third consecutive month.

The sale of durable goods such as cars gained 1.2 percent, but those for semi-durable and non-durable goods fell 1.2 percent and 0.3 percent each.

The cyclical variation factor for leading economic indicators, which gauges outlook for the future economic situation, was up 0.1 points to 99.4 in May, marking the first turnaround in 11 months.

The reading for coincident economic indicators, which measures the current economic conditions, gained 0.1 points to 102.2 in May, rebounding for the third month.

More South Korea News

Access More

Sign up for South Korea News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!