SEOUL, Aug. 30 (Xinhua) -- South Korea's industrial production rebounded in three months in July, indicating Japan's export curbs had yet to be reflected in the industrial activity, a government report showed Friday.
The seasonally-adjusted production in all industries, which exclude agricultural, forestry and fishery sectors, gained 1.2 percent in July from the previous month, according to Statistics Korea.
It was the first growth in three months, after sliding 0.2 percent in May and 0.6 percent in June respectively.
Output in the manufacturing and mining industries advanced 2.6 percent in July from a month earlier, marking the fastest increase in 32 months since November 2016.
The statistical office said Japan's export restrictions had little impact on the industrial output due to inventory.
It noted that the campaign here to boycott Japanese products scarcely influenced private consumption as substitute goods replaced Japanese products, though a part of the services sector was affected such as travel agencies.
South Korean tourists refrained from traveling to Japan as part of the boycott campaign.
The trade feud between South Korean and Japan worsened as Japan removed South Korea earlier this month from its whitelist of trusted trading partners, which are given preferential export procedure. In response, Seoul took Tokyo off its whitelist of trusted export partners.
The Seoul-Tokyo trade dispute was sparked by Japan's tighter control last month over its export to South Korea of three materials vital to produce memory chips and display panels, the mainstay of the South Korean export.
The South Korean government unveiled the largest-ever budget plan for 2020 worth 513.5 trillion won (422 billion U.S. dollars) to foster new growth engines and tackle the effect from the trade spat with Japan.
Local manufacturers saw production expand 2.6 percent in July from a month earlier. Automotive production gained 6.3 percent on the launch of new models, while chemicals output grew 7.3 percent on the resumption of operation in some of factories that had been under maintenance works.
Semiconductor shipment declined 4.1 percent last month, but chip inventory climbed 10.9 percent on the downturn of business cycle of the global chip industry.
Manufacturers recorded an average capacity ratio of 74.8 percent in July, up 2.6 percentage points from the previous month.
Production in the services industry added 1.0 percent in July from a month earlier, marking the biggest growth in six months since January.
Retail sales, which reflect private consumption, declined 0.9 percent in the month, continuing a downward trend for the second consecutive month.
The sale of durable goods, including consumer electronics and furniture, shrank 2.0 percent, with the sale of semi-durable goods such s clothing sliding 1.6 percent.
Facility investment gained 2.1 percent last month, posting the fastest expansion since April. Investment in transport equipment, including the automotive sector, jumped 11.3 percent, but machinery investment reduced 1.0 percent.
Completed construction diminished 2.3 percent in July from a month earlier, while construction orders plunged 23.3 percent in July from a year ago.
The real estate market cooled down as the government unveiled a series of measures to curb speculative investment in the property market.
Under the previous governments, households had pushed to purchase multiple homes with borrowed money amid the prolonged record-low interest rate and the eased regulations on mortgage loan.
Meanwhile, the cyclical factor for leading indicators, which gauge outlook for future economic conditions, continued a downward trend for two straight months to July amid worry about the global trade dispute and the Seoul-Tokyo trade feud.
The figure for coincident indicators, which reflect current economic situations, fell 0.1 point last month.
