South Korea's industrial output growth turned negative for the first time in 31 months in January, boosting concerns that the global economic slowdown began influencing the Asia's No. 4 economy negatively, a government report showed Wednesday.
Output in mining, manufacturing and electricity and gas sectors diminished 2 percent in January from a year earlier after growing 2.8 percent in the previous month, according to the report by Statistics Korea. The on-year expansion turned negative for the first time since June 2009.
From a month before, the industrial production expanded 3.3 percent, posting the first on-month expansion in 4 months.
The January on-year contraction came as weak demand for automobiles and audio and video equipment outweighed strong performance in chips and components and oil refining sectors, according to the report. Production in autos shrank 6.9 percent on- year last month, with those of audio and video equipment and food and beverages dropping 11.2 percent and 9.4 percent respectively.
Shipment in the mining firms and manufacturers diminished 2.4 percent on-year in January due to a slump in audio and video equipment and transportation equipments, while inventory in the sector surged 20.9 percent over the same period.
Local manufacturers operated at an average capacity of 80.6 percent last month, up 3.6 percentage points from the previous month. The factory utilization rate stood at 83.6 percent a year earlier.
Production in the service industry grew 0.9 percent on-year in January as upswings in finance and insurance and education sectors offset downswings in real estate and rent and restaurant and lodging sectors, according to the report.
Retail sales logged a 0.9 percent on-year growth in January due to outperformance in durable goods such as computers and telecommunication devices as well as non-durable goods, including car fuels and food and beverages.
Facility investment expanded 7.8 percent on-year in January. The expansion came as underperformance in the auto sector was offset by outperformance in general machinery and electric and electronic devices.
The value of construction completed at constant price contracted 6.4 percent on-year in January, with the figure for construction orders received at current price falling 1.8 percent.
The leading index of economic indicators, which gauges business activities eight to 15 months ahead, was up 0.3 point from the previous month, but the coincident index, measuring current economic conditions, was down 0.1 point, marking the five straight month of on-month fall.