S. Korea's Industrial Output Slides 1.3 Percent in January

(MENAFN) South Korea's industrial engine slowed sharply at the start of the year, with overall production contracting in January as chipmakers pulled back output following two consecutive months of gains, government data revealed Wednesday.

The seasonally-adjusted all-industry production index — which strips out agriculture, livestock and fishery — declined 1.3 percent month-on-month in January, reversing growth of 0.7 percent in November and 1.0 percent in December, according to the Ministry of Data and Statistics.

Semiconductors were the primary culprit. Chip output fell 4.4 percent from the previous month, snapping a three-month streak of growth and dragging the broader manufacturing sector down 2.1 percent. The services industry, by contrast, held steady with no movement recorded.

Construction bore the steepest losses, with production plummeting 11.3 percent — the sharpest contraction in 14 years, dating back to January 2012. Completed construction mirrored that drop at 11.3 percent. Public administration offered a modest counterweight, with output climbing 1.2 percent.

Not all indicators pointed downward. Retail sales — a key barometer of private consumption — rose 2.3 percent on a monthly basis, extending an upward trend for a second straight month. Facility investment also expanded, posting a 6.8 percent gain.

Forward-looking signals offered cautious optimism. The cyclical variation factor for leading economic indicators edged up 0.7 points to 102.3 in January, while the coincident economic indicator, which tracks current conditions, held flat at 99.0.

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