Korea's industrial output climbs for third straight month

A port in the southern city of Busan on Feb. 13, 2024. [YONHAP]

Korea’s industrial output increased for the third straight month in January, rising 0.4 percent on month.

Retail sales also gathered ground for the second month, while facility investment and construction orders tumbled amid weak domestic demand, according to data compiled by Statistics Korea.

Industrial output gain in January was followed by a 0.3 percent increase in November last year and 0.4 percent growth in December.

It marked the first time in two years that industrial output rose for three months in a row.

But the output in the overall mining manufacturing sector shed 1.3 percent, driven by an 8.6 percent on-month fall in chip production.

It was the first on-month fall in the semiconductor output since October last year, which was attributable to a high base effect and seasonal factors, officials said.

The semiconductor industry has seen a gradual recovery of global demand since late last year after the monthslong downcycle.

The production of communication and broadcasting equipment surged 46.8 percent.

Production in the construction sector jumped 12.4 percent in January, the sharpest increase since December 2011. It also was the first on-month rise in four months.

The output in the service sector inched up 0.1 percent in January, the data showed.

Compared with a year earlier, industrial output climbed 7.3 percent in January as that of semiconductors surged 44.1 percent.

Retail sales, a gauge of private spending, advanced 0.8 percent on month in January, the second monthly increase, on growing sales of food, cosmetics and other non-durable goods, which gained 2.3 percent over the period.

On an on-year basis, however, retail sales shed 3.4 percent.

BY JIN MIN-JI, YONHAP [jin.minji@joongang.co.kr]