Seoul: South Korea’s industrial production expanded from a month earlier in September, driven by gains in the service sector, while retail sales lost ground for the second consecutive month, data showed Friday. Industrial production went up 1 percent last month compared with the previous month, according to data from the Ministry of Data and Statistics. Retail sales, a gauge of private spending, inched down 0.1 percent on-month. Facility investment jumped 12.7 percent, rebounding from an on-month decline in August. The rise in overall industrial output was led by a 1.8 percent rise in the service sector.

According to Yonhap News Agency, gains in wholesale and retail, as well as finance and insurance, offset declines in arts, and accommodation and food services. In contrast, the output of the mining and manufacturing sector, considered the backbone of the economy, lost 1.2 percent on-month. In the mining and manufacturing sector, chip production surged 19.6 percent on-month, while automobile production dropped 18.3 percent and machinery products decreased 6.9 percent. Retail sales continued to decline for a second month in September, but the pace of decline sharply slowed from the 2.4 percent decrease recorded in the previous month.

The downward trend suggests consumption may be slowing after temporary gains earlier this year, when the government provided cash handouts under a supplementary budget to stimulate spending. Retail sales of semidurable goods, such as apparel, fell 5.7 percent, and sales of nondurable goods, including cosmetics, lost 0.1 percent, while those of durable goods, such as home appliances, gained 3.9 percent. Facility investment jumped thanks to strong purchases of machinery for semiconductor manufacturing and transportation equipment.