Sales at South Korean department stores and discount outlets rose sharply in February after contracting for five straight months, helped by demand caused by the Lunar New Year holiday, the government said Tuesday.
According to the Ministry of Strategy and Finance's Green Book, sales at local discount store chains surged 30.5 percent on-year last month, with numbers for department stores rising 7.1 percent.
The positive turnaround follows on-year monthly contractions since September.
The ministry said the rise comes as the Lunar New Year holiday fell in mid-February this year, instead of late January in 2014.
The holiday is one of the most important in the country with sales usually surging on demand for food and gifts exchanged between families and friends.
Policymakers have said the date of the Lunar New Year, which shifts from year to year, almost always affects retail sales. The ministry cited the change in the three-day holiday as one reason for the poor sales showing in January.
Demand for gasoline shot up 12.5 percent last month from the year before, with credit card spending jumping 10 percent. Numbers for both had been on the rise in recent months.
The ministry speculated that despite weak overall consumption gripping the country, the latest data show some indication that consumer sentiment is improving.
On the negative side, the number of people who switched telecom carriers last month, which reflects sales of mobile phones, fell to 580,000 units from 757,000 in January. The move is related to carriers cutting back on subsidies and people holding out to wait for the launch of new smartphones, such as Samsung's Galaxy S6, the ministry said.
There was also a 3.8 percent on-year dip in sales of vehicles made by local carmakers. This number is roughly on par with the 3.9 percent decrease reported in January, and does not take into account import cars.
The latest data showed that South Korea's consumer spending advanced 0.5 percent in the fourth quarter vis-a-vis the previous three-month period and moved up 1.4 percent on-year.
Regarding the economy as a whole, a ministry official said that while things are improving, the gains are not solid.
"At present, there is a need to exercise caution when predicting the future," said the official, who declined to be identified.
He said that to get a better grasp of the situation, all the data from February should be looked at alongside January's figures.
The official pointed out that the steady rise in employment and real estate transactions are all good signs. Employment can help spending and tax earnings, while the purchase of homes and stabilization of property values can stimulate the economy.
He added that while a likely slowdown in China's economy is a source of concern, Beijing's efforts to cushion any hard landing should allow South Korea to adjust.
The International Monetary Fund has predicted a growth rate of about 6 percent for the world's No. 2 economy, although Chinese officials are eying 7 percent growth. China is South Korea's largest overseas market.
Other negative developments included weaker-than-expected industrial output that contracted 3.7 percent on-month in January, and a rise in household debt, as people borrowed more to buy homes.
A rise in debt hurts disposable income and spending. (Yonhap)
