Seoul: South Korea's industrial production and facility investment declined in May from the previous month, while retail sales remained flat, data showed Monday. Industrial production fell 1.1 percent on-month in May, continuing its downward trend for a second month, according to the data compiled by Statistics Korea.
According to Yonhap News Agency, facility investment dropped 4.7 percent from the previous month, marking three months of decline. Meanwhile, retail sales, a gauge of private spending, remained unchanged from a month earlier in May. All three major economic indicators had recorded simultaneous declines in April, underscoring the fragility of the country's recent economic momentum.
The drop in industrial output was largely driven by a 2.9 percent on-month contraction in the mining and manufacturing sector, considered the backbone of the economy. Within manufacturing, the production of basic metals rose 1.5 percent on-month. However, the modest increase was offset by sharp declines in pharmaceuticals and fabricated metal products, which dropped 10.4 percent and 6.9 percent, respectively. On a yearly basis, overall industrial output in May lost 0.8 percent.
Retail sales showed lackluster performance across most sectors. Sales of durable goods, including home appliances, climbed 1.2 percent, but this was outweighed by a 0.7 percent decline in non-durable goods, such as cosmetics. Compared with the same month a year earlier, retail sales edged down 0.2 percent.
Facility investment weakened across most areas, except for the transportation equipment sector, which edged up 0.1 percent on-month. Construction investment remained sluggish, with construction orders falling 3.9 percent from the previous month, marking the 11th consecutive month of decline.