Industrial output rebounds 0.1 % in November; retail sales down for third month

South Korea's industrial output rebounded for the first time in five months in November, data showed Thursday, while retail sales extended losses for the third consecutive month amid economic concerns.

Industrial production edged up 0.1 percent on-month last month, turning around from a 1.7 percent decrease posted in October, according to the data from Statistics Korea.

The rebound came as the output in the mining, manufacturing, gas and electricity industries advanced 0.4 percent on-month in November. The output from the automobile sector especially jumped 9 percent over the period.

The growth, however, was limited as production from the chip industry slipped 11 percent amid the weak global demand.

"Amid the growing number of COVID-19 patients, the purchase of treatments has increased. The automobile and machine industries performed relatively well, leading to overall gains," said Eo Woon-sun, a senior Statistics Korea official.

Eo, however, said that China's COVID-19 lockdown has weighed down on the smartphone industry, causing an overall decline in the production of chips.

Service output went down 0.6 percent in November from a month earlier, led mainly by the accommodation and restaurant industries.

The decrease was partially attributable to the deadly crowd crush in Seoul on Oct. 29 that claimed 158 lives, which led to lower demand for face-to-face services, the agency said.

Retail sales, a gauge of private spending, decreased 1.8 percent, extending losses to the third consecutive month.

Sales for semi-durable goods, including clothes, declined 5.9 percent, and those of durable goods, such as electronics, fell 1.4 percent on unusually warm weather in November, it added.

Facility investment moved up 1 percent on-month in November, the data showed.

Investment in the machine industry gained 2.9 percent, while that in the ship and transportation equipment sector moved down 4.5 percent on-month in November, the data showed.

"The service output and retail sales are decreasing. The manufacturing sector also remains sluggish, and we cannot say that it is improving," the Statistics Korea official said. "The economy continued to stay weak."

South Korea, meanwhile, has been grappling with inflation, with its consumer prices soaring 5 percent on-year in November.

The central bank has also hiked the rate by a combined 2.75 percentage points since August last year to tame inflation. The rate currently stands at 3.25 percent.

Meanwhile, South Korea's exports fell for the second month in a row in November and suffered a trade deficit for the eighth straight month on high global energy prices, sounding an alarm over its growth momentum.

Asia's fourth-largest economy is expected to continue facing uncertainties due to the global economic slowdown, the sluggish chip industry, and rate hikes down the road, the Ministry of Economy and Finance added in a separate report.

"In terms of production, the eased disruptions in the supply chain and China's with-COVID-19 policies may give a positive impact. But the slowing exports, rising amount of chip inventories, and the aftermath of the truckers' strike will remain as hurdles," the finance ministry said.

The ministry was referring to a nationwide strike of local truckers which lasted from Nov. 24 to Dec. 9.

"As for consumption and investment, the rising number of foreign tourists is a positive factor. But the downward trend of chip and property markets, high prices, and uncertainties of monetary-tightening moves in major countries are risks," it added. (Yonhap)