S.Korea's industrial production records biggest fall in nearly 6 years

SEOUL, March 29 (Xinhua) -- South Korea's industrial production recorded the biggest fall in nearly six years last month on weak export caused by the global economic slowdown, a government report showed Friday.

Seasonally adjusted production in all industries dipped 1.9 percent in February from the previous month, the biggest reduction since March 2013, according to Statistics Korea.

The industrial output rebounded in January, after skidding for the past three months, but it turned downward again in February.

Production in the mining and manufacturing industries declined 2.6 percent last month as export, which accounts for about half of the export-driven economy, continued to fall for three months through February.

The number of business days reduced by five days in February compared with the prior month as the Lunar New Year's holiday fell in last month.

The country's export was widely forecast to struggle for the coming months as the global economy weakened amid uncertainties such as protectionist moves and the British exit from the European Union (EU).

Shipment among local manufacturers slumped 2.1 percent in February from a month earlier on weakness in the car and oil-refining sectors.

Manufacturers' inventory gained 0.5 percent on increases in the semiconductor and machinery equipment sectors.

Retail sales, which reflect private consumption, slipped 0.5 percent in February from a month ago, after growing 0.1 percent in the previous month.

The downturn was mainly attributable to the less business days in February. Sentiment among local consumers over economic situation continued to improve for four months through March amid the government's efforts to boost household income.

The Moon Jae-in government adopted a so-called income-driven growth policy to narrow income gap by increasing household income of the low-income bracket. It raised minimum wage by a double digit for two straight years.

Amid the external uncertainties, domestic companies refrained from making new investments and spending capital on new facilities.

Facility investment tumbled 10.4 percent in February from a month ago, marking the fastest decline since November 2013. The capital spending expanded 1.9 percent in January.

Construction completed slumped 4.6 percent in the cited period, indicating a lackluster construction industry. It was the fastest fall in 12 months.

Local builders struggled to make profit domestically as the government announced a set of measures last year to control speculative investment in the real estate market.

The country's household debts kept a record-breaking trend as people rushed to purchase new home with borrowed money amid the near-record-low policy rate.

The cyclical factor for leading indicators, which gauge outlook for future economic conditions, kept sliding for the ninth consecutive month through February.

The figure for coincident indicators was down 0.4 points in February from a month ago, continuing to skid for the 11th straight month.