Industrial output up in May, along with private spending, facility investment

Renault Korea Motors plant in Busan [RENAULT KOREA MOTORS]

Korea's industrial output rose 1.3 percent in May from a month earlier, data showed Friday, with retail sales and facility investment gaining ground as well.

The latest growth marks a sharp turnaround from a 1.3 percent on-month drop tallied in April, according to the data from Statistics Korea. It was also the sharpest growth since March 2022.

The output in the mining, manufacturing, gas and electricity industries moved up 3.2 percent over the period on the back of the robust performance of the automobile, which advanced 8.7 percent, and chip segments at 4.4 percent, the data showed.

The agency noted that the latest figures do not necessarily indicate a definitive recovery path for the chip industry, as there are no signs of a significant rebound in its exports.

The service output, however, edged down 0.1 percent over the period, as losses from the finance, insurance, accommodation and restaurant sectors offset gains from the science and technology segments.

Retail sales, a gauge of private spending, edged up 0.4 percent on month, as people spent more on durable goods, such as home appliances, following the warmer-than-average weather conditions in the month, with the sector rising 0.5 percent.

Sales of semidurable goods, such as clothes, or non-durable items, including food, also edged up 0.6 percent and 0.2 percent, respectively.

Facility investment, meanwhile, gained 3.5 percent.

The growth was mainly led by the machinery and aircraft segments, which advanced 2.6 percent and 6.2 percent over the period, respectively.

It was the first time since February that Korea's industrial output, retail sales, and facility investment advanced on month simultaneously.

"There are, however, still uncertainties, depending on the recovery timeline of the information and technology industry, along with the economic situation of advanced nations," an official from the agency said.

Yonhap