S.Korea's industrial output rises for 2 months to April

Source:Xinhua Published: 2019/5/31 11:40:06

South Korea's industrial output rose for two straight months through April on the recovery of manufacturing production, a government report showed Friday.

Production in all industries grew 0.7 percent in April from a month earlier, after gaining 1.5 percent in the previous month, according to Statistics Korea.

The continued growth was attributable to the recovery in the manufacturing sector, especially among chipmakers.

Weak global demand for semiconductor had led to the fall in export for five straight months through April, resulting in a slump in the overall industrial output.

The production among manufacturers increased 1.7 percent in April from a month earlier. The chip output advanced 6.5 percent, with the figure for oil refiners jumping 11.2 percent.

Output in the mining and manufacturing industries expanded 1.6 percent in the month.

The chip output expansion came as the launch of new flagship smartphones such as Samsung Electronics' Galaxy S10 led to higher demand for semiconductors.

Inventory among manufacturers gained 2.5 percent last month, but the manufacturing shipment shed 0.8 percent.

Manufacturers posted an average capacity ratio of 72.6 percent in April, up 1 percentage point from the previous month.

Despite the industrial output growth, concerns remained over the continued fall in export, which accounts for about half of the export-driven economy, amid the global trade dispute.

The government submitted a supplementary budget to the National Assembly to bolster the economy, but it had yet to be approved by the parliament amid the political wrangling.

Output in the services sector added 0.3 percent in the cited period on lackluster activity in the wholesale and retail industry. Production in the transport and warehousing sectors grew 0.3 percent last month.

Helped by the recovering output of manufacturers, facility investment went up 4.6 percent in April, after advancing 10.1 percent in the previous month.

The capital spending in the machinery sector expanded 8.1 percent on demand from the semiconductor equipment companies, offsetting a reduction in the transport equipment industry.

Retail sale, which reflects private consumption, declined 1.2 percent in April from a month earlier, after growing 3.5 percent in the prior month.

The durable goods sale slumped 4.2 percent last month, marking the biggest monthly slide in seven months. Those for non-durable and semi-durable goods slipped 0.2 percent in the month.

Completed construction fell 2.8 percent in April from a month ago, but the construction orders jumped 23.8 percent compared with a year earlier, the fastest expansion in 13 months.

The cyclical factor for leading indicators, which gauge outlook for future economic conditions, stood unchanged at 98.2 in April, halting the downward trend that had lasted for 10 months from June last year.

The figure for coincident indicators was also unchanged at 98.5 last month.

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