South Korea’s industrial output growth remained unchanged in April from a year earlier mainly due to weak exports, but it inched up from the previous month, a government report showed Thursday.
Production in the mining and manufacturing industries remained flat last month from April 2011, compared with a 0.7 percent on-year gain tallied for March, according to the report by Statistics Korea.
The monthly output number, however, represents a 0.9 percent increase from March.
The manufacturing sector, which makes up the bulk of all industrial output in the country, posted zero growth from a year earlier but grew 0.8 percent from the month before, the report said.
The country’s service sector output grew 1 percent on-year last month, with the average operating rate of manufacturers standing at 79.3 percent, up 1.2 percentage points from March, according to the report.
“Weak exports brought on in part by fewer working days affected overall industrial production, despite modest gains in domestic consumption,” said Jeon Baek-geun, a director at the statistical agency.
The country’s exports reached $46.19 billion last month, a 4.8 percent contraction from April 2011.
The latest report showed production of audio video equipment and machinery dropping 12.2 percent and 3.2 percent, respectively, vis-a-vis a year earlier, although output of cars rose 4.5 percent, with semiconductors and chemical equipment posting gains of 3.1 percent and 4.8 percent.
In the service sector, retail production moved up 1 percent on-year and 0.2 percent from the previous month, helped by modest gains in home rentals, publishing and broadcasting businesses.
Facility investments, a key barometer of future industrial growth, rose 5 percent on-year, helped by money poured into machinery and transportation equipment. Compared to March, investment rose a solid 4.5 percent.
Investment in machinery and transportation equipment rose 4.1 percent and 10.2 percent, each, in the cited month.
Construction orders, meanwhile, were down 4.4 percent on-year with actual building posting minus growth of 7.5 percent, according to the report.
