S.Korea's industrial output, consumption, investment all grow in 6 months

Source: Xinhua| 2020-07-31 15:13:09|Editor: huaxia

SEOUL, July 31 (Xinhua) -- South Korea's industrial output, consumption, investment all grew at the same time in six months, showing signs of recovery from the COVID-19 outbreak, statistical office data showed Friday.

The seasonally adjusted production in all industries, which exclude the agriculture, forestry and fishery sector, gained 4.2 percent in June from a month earlier, according to Statistics Korea.

The industrial production made the first rebound in six months thanks to fiscal and monetary stimulus packages.

To bolster the flagging economy caused by the COVID-19 pandemic, the government has announced a total of 250 trillion won (210 billion U.S. dollars) worth of stimulus packages to financially support micro-business owners, small firms and big corporations that suffered from losses from the virus outbreak.

The country's central bank lowered its target rate by 25 basis points to an all-time low of 0.50 percent in May, after slashing the rate by 50 basis points in March.

South Korea's real gross domestic product (GDP), adjusted for inflation, dropped 3.3 percent in the second quarter from the previous quarter, marking the fastest fall in over 22 years since the first quarter of 1998. During the first quarter, the real GDP declined 1.3 percent.

However, global demand partially recovered since May thanks to the reopening of businesses across the globe.

Production in the mining and manufacturing industry advanced 7.2 percent in June from a month earlier, recording the biggest expansion in over 11 years since February 2009.

Output among manufacturers picked up 7.4 percent last month, logging the first turnaround in three months. The production in the automotive and semiconductor sectors grew 22.9 percent and 3.8 percent respectively.

Export shipment in the manufacturing industry soared 9.8 percent in June on a monthly basis, marking the highest growth in almost 33 years since September 1987.

Output in the services industry rose 2.2 percent in June from a month earlier owing to brisk activity in the wholesale and retail, the education services, and the real estate sectors.

Retail sale, which reflects private consumption, climbed 2.4 percent in June from the previous month, continuing to increase for the third consecutive month.

It was ascribable to the government's offer of relief grans to all households, fueling the sentiment among consumers over economic situation.

The sale of durable goods, such as cars, went up 4.1 percent in the month, with those for semi-durable and non-durable goods rising 4.7 percent and 0.4 percent each.

Revenue by duty free shops, department stores, discount outlets and convenient stores expanded 15.8 percent, 14.3 percent, 6.2 percent and 1.5 percent each in June on a monthly basis.

Facility investment increased 5.4 percent in June from a month ago, and completed construction added 0.4 percent.

The cyclical variation factor for leading economic indicators, which gauges the outlook for future economic situation, rose 0.4 points in June from a month earlier. It was the first rebound in five months.

The figure for coincident economic indicators, which reflects the current economic situation, added 0.2 points last month, posting the first rebound in five months. Enditem

KEY WORDS:
EXPLORE XINHUANET
010020070750000000000000011100001392544091