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Staff Reporter
Industrial output in September expanded at its fastest pace in 20 months on strong production of automobiles and semiconductors, boosting the growing optimism that the Korean economy is entering a full-fledged recovery. September also marks the first time production, investment and consumption increased simultaneously since December 2007.
Statistics Korea said Friday that output jumped 11 percent last month from the same month last year, the largest growth since January 2008 when production rose 11.7 percent.
It also grew for the third consecutive month since July, when output growth turned positive for the first time in 10 months.
After adjusting for seasonal factors, production expanded 5.4 percent from August.
Statistics director Yun Myung-joon attributed the increase in industrial production to strong sales of automobiles and semiconductors on the back of tax incentives and other government support measures. "It is too early to say all industries are on a solid recovery path. But it is safe to say economic conditions here have improved substantially."
Yun said Asia's fourth-largest economy hit bottom in February and has since headed upward continuously.
The production of automobiles and semiconductors increased 32.3 percent and 23 percent in September from a year earlier, respectively.
Inventories fell 14 percent from the previous year, with factories operating at an average capacity of 80.2 percent, up sharply from 77.3 percent, and exceeding the 80-percent mark for the first time in 15 months.
Services-sector output also grew 4.2 percent from a year ago. The finance and insurance sectors saw output increase by 8.9 percent, with lodging and restaurant businesses and the retail and wholesale sectors rising 0.4 percent and 3.2 percent, respectively. Sales of education-related businesses inched down 0.4 percent from the previous year.
Retail sales rose 6.7 percent from a year ago and seasonally-adjusted sales also increased 1.8 percent month-on-month.
Corporate facility investment on machinery and telecommunications jumped 5.8 percent from the previous year. Orders received by construction companies surged 58.4 percent.
Additionally, the key index measuring current economic conditions inched up to 96.8 from 96.7 a month earlier, rising for the seventh consecutive month, while the indicator of future outlook jumped for the ninth consecutive month.
leehs@koreatimes.co.kr
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