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S.KOREA-INDUSTRIAL-OUTPUT
S.Korea’s industrial output rebounds in July amid worry about slowdown
SEOUL, Aug. 31, 2018 (BSS/Xinhua) — Industrial output in South Korea
rebounded last month amid rising worry about economic slowdown caused mainly
by weak labor market conditions, a government report showed Friday.
Production in all industries grew 0.5 percent in July from a month
earlier, after falling 0.7 percent in June, according to Statistics Korea.
Output in the mining and manufacturing sectors rose 0.4 percent in the
month on solid demand for chemicals and transport equipment that offset soft
demand for automobiles.
Manufacturers logged an average capacity ratio of 74.3 percent in July, up
0.9 percentage points from the previous month.
Industrial production increased on brisk exports, but companies refrained
from spending capital on new facilities.
Facility investment declined 0.6 percent in July from a month ago, keeping
a downward momentum for five straight months. It marked the longest downward
trend in almost 20 years.
The cyclical factor for leading indicators, which reflect future economic
conditions, dipped 0.2 points in July from a month earlier, dimming the
economic outlook. The figure for coincident indicators kept sliding for four
months in a row.
Exports, which account for about half of the economy, topped 50 billion
U.S. dollars for five months to July, in which the outbound shipment posted
the second-biggest export reading.
However, the labor market conditions continued to weaken despite the
government’s efforts to create decent jobs.
South Korean President Moon Jae-in prioritized job creation, especially
for the younger generation, among his economic policies, but it had yet to
take effect.
The government unveiled its 2019 budget plan, which is mainly focused on
creating quality jobs and securing social welfare, in a bid to bolster the
Moon-advocated economic policy, called income-driven growth that aims to
increase household income, foster innovative industries and create a fair
market.
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S.KOREA-INDUSTRIAL-OUTPUT 2 LAST SEOUL
Production in the services industry was unchanged in July from the
previous month. Retail sales gained 0.5 percent last month, continuing to
grow for two months.
Completed construction inched down 0.1 percent in July from a month
earlier as the government sought to control speculative investment in the
real estate market.
In a separate statement, the finance ministry cited trade conflict among
major economies and the expected interest rate increase in the United States
as negative risk factors facing the South Korean economy.
The Bank of Korea (BOK) left its benchmark interest rate unchanged at 1.5
percent since it raised the policy rate to the current level from an all-time
low of 1.25 percent in November last year.
The BOK’s target rate fell below the U.S. Federal Reserve’s benchmark
rate. The Fed lifted its policy rate to a range of 1.75-2.00 percent in June.
However, the finance ministry said South Korea’s robust exports and the
global economic recovery would positively affect Asia’s No.4 economy.
BSS/XINHUA/HR/1200