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S. Korea’s industrial output suffers extended slump in May amid virus pandemic

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South Korea’s industrial output extended its slump in May as the coronavirus pandemic disrupted supply chains, but retail sales reported a robust gain, data showed Tuesday.

The nation’s overall industrial production fell 1.2 per cent on-month in May, following a 2.8 per cent on-month plunge in April, according to data compiled by Statistics Korea.

Compared with a year earlier, overall industrial production also plunged 5.6 percent in May.

Production in the mining, manufacturing, gas and electricity industries plunged 6.7 per cent on-month in May, marking the sharpest decline since December 2008.

Retail sales rose 4.6 per cent in May from a month earlier as the nation eased strict social distancing rules, and the output in the service sector gained 2.3 per cent on-month.

Sales of durable goods, such as cars, gained 7.6 per cent and those of nondurable ones, such as cosmetics, edged up 0.7 per cent, the data showed.

Production of chips rose 10.8 per cent on-month in May, but auto output plummeted 21.4 per cent last month.

Local manufacturers have been facing hurdles in securing key parts as suppliers around the globe suspended their operations amid the pandemic, with global shipments of goods also being disrupted by entry bans.

Facility investment fell 5.9 percent on-month in May, marking the first monthly decline since February this year. the data showed.

Vice Finance Minister Kim Yong-beom said a recovery in retail sales is expected to help the nation’s economy revive its growth momentum.

Exports have also showed signs of bottoming out in June, Kim said, adding that the government would encourage companies to make more investment.

The so-called cyclical component of the composite leading index, which predicts the turning point in business cycles, fell by 0.8 point on-month to 96.5, marking the lowest level in more than 21 years.

The nation’s economy shrank 1.3 per cent on-quarter in the first quarter of this year, the sharpest quarterly contraction since the last three months of 2008.

Exports slipped 7.5 per cent on-year in the first 20 days of June amid the shock from the coronavirus pandemic.

Edited By: Emmanuel Yashim (NAN)

Emmanuel Yashim

Emmanuel Yashim: NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.ng. Disclaimer.

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