S. Korea's Industrial Output, Retails Sales, Investment Fall In April

(MENAFN- IANS) Seoul, May 29 (IANS) South Korea's industrial output lost ground in April from a month earlier, data showed on Friday, with retail sales and facility investment sliding amid economic uncertainties stemming from tensions in the Middle East.

Industrial production fell 0.6 percent last month from March, according to data from the Ministry of Data and Statistics, reports Yonhap news agency.

Output in the mining and manufacturing sector, a key pillar of the economy, shed 0.7 percent from the previous month due to the sluggish performance of the automobile industry, whose output fell 10 percent. Production in the chip sector, on the other hand, rose 3.1 percent.

Output from the oil refining industry nose-dived 19.4 percent, apparently reflecting supply disruptions stemming from tensions caused by the U.S.-Iran conflict. It was the sharpest drop since the 22.1 percent decrease posted in 1988.

The data also showed that output in the service sector edged down 1 percent in April from the previous month due to the weak performance of the finance and insurance businesses, which shed 7.7 percent.

The wholesale and retail segment also lost 1.5 percent, although the information and telecommunications segment jumped 4.3 percent.

"It appears the figures were affected both by a base effect following gains in February and March and by the Middle East war," said Lee Doo-won, a senior official at the data ministry.

"But compared with a year earlier, the upward trend has continued," Lee added.

In a separate report, the finance ministry also said the decrease followed disruptions in the supply of energy resources.

Retail sales, a gauge of private spending, contracted 3.6 percent over the period.

Sales of semidurable goods, such as clothing, remained unchanged from a month earlier. Sales of durable goods, including computers, dropped 11.1 percent, the data showed.

Sales of nondurable goods, such as gasoline, edged down 1.1 percent.

The ministry said facility investment slid 3.6 percent in April from a month earlier, due mainly to weaker investment in the aviation industry.

Investment in the machinery segment, including products used by chipmakers, in contrast, rose 0.5 percent.

The finance ministry said that while the key figures lost ground in April, they are expected to rebound in May, as consumer sentiment recovered in the month and business sentiment reached the highest level in 43 months.

"Uncertainties surrounding the Middle East war remain high, and burdens on the people continue due to the prolonged rise in oil prices," the finance ministry said.

"The government will make all-out efforts to minimise the economic fallout from the war by stabilising prices and supply chains while creating jobs and supporting domestic consumption," it added.

-IANS

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