South Korea's industrial output flat in July as retail sales decline and facility investment rises

By Kang Yoon-seung

SEJONG, Aug. 31 (Yonhap) -- South Korea's industrial output remained flat in July from a month earlier, data showed Monday, with retail sales losing ground, while 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.

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.

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.

Retail sales, a gauge of private spending, backtracked 2.4 percent over the period, led mostly by durable goods, including cars.

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, while investment in machinery, including semiconductor production equipment, increased 4.2 percent.