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A mixed bag of figures for the South Korean economy,... which had been picking up an encouraging
-- if small -- head of steam recently.
They aren't TOO discouraging,.. but the numbers show industrial output is steadily going down...
and business sentiment isn't all that healthy... either.
Kim Ji-yeon reports.
Output across all of Korea's industries edged down in June from the previous month... the
third month in a row it has lost ground.
Statistics Korea said Friday that production in the mining and manufacturing industries
was down zero-point-two percent on-month,... due to an inventory adjustment in semiconductors...
and slowed output in petroleum refinery.
"In the case of semiconductors, even though there has been an increase in shipments...
it may not necessarily mean an increase in output,... as the month of shipping is different
from the month that the orders for shipments are received."
Output in the services sector was better.
It increased half-a-percent on-month in June... while consumption spiked by more than one-percent...
as retail sales, especially of cosmetics and clothing, jumped.
And business sentiment among local industries is mixed.
A Bank of Korea survey of more than three-thousand-300 companies showed that overall sentiment in
July remained flat from a month earlier... at 78.
A reading below 100 means there are more pessimists rather than optimists.
The auto industry's confidence plunged by ten points from the previous month to 65...
due to prolonged labor strikes and sluggish auto exports.
"Korea's auto exports to emerging markets, which make up more than half of its total
auto exports, have waned, largely due to low international oil prices.
Also playing a part are sluggish exports to China, which is retaliating against Korea's
THAAD deployment,... and to the U.S., where consumers favor models Korean automakers don't
focus on."
However, it isn't all doom and gloom.
Sentiment has improved sharply in the chemicals sector,... adding more than seven points on-month
to 93... as falling oil prices started to stabilize.
The electronics sector feels positive, too.
Its sentiment rose by three points on-month to 99... on the back of booming semiconductor
sales.
"The statistics agency expects industrial output to increase during the latter half
of this year, pointing to improved consumer sentiment and IT exports over the past several
months.
Kim Ji-yeon, Arirang News, Sejong."
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