Roundup: S.Korea's industrial output logs 1st fall in 3 months

South Korea's industrial output logged the first fall in three months as the rapid spread of the Omicron COVID-19 variant roiled the services industry, statistical office data showed Wednesday.

The seasonally-adjusted production in all industries, which exclude the agriculture, fishery and forestry sectors, shrank 0.3 percent in January from a month earlier, according to Statistics Korea.

It marked the first reduction in three months, after expanding 1.2 percent in November and 1.3 percent in December last year.

Output in the mining and manufacturing industry rose 0.2 percent in January, but production in the services industry declined 0.3 percent as the Omicron spread hampered the business of microbusiness owners.

In November last year, the government lifted restrictions on the business hour of crowded facilities amid the higher vaccination rate against COVID-19, allowing more people to gather in restaurants and cafes.

The tightened anti-virus measures were reintroduced in December as the pandemic resurged on the Omicron variant spread.

In the latest tally, the country reported a record high of 219,241 daily COVID-19 cases for the past 24 hours, raising the total number of infections to 3,492,686. The daily caseload topped 200,000 for the first time in the country.

Output in the wholesale and retail sector shed 0.1 percent in January from a month earlier, and those in the finance and insurance and the science and technology segments declined more than 2 percent.

Production in the eatery and lodging, and the arts, sports, and leisure sectors rose 2.0 percent and 5.4 percent each.

Output among manufacturers added 0.1 percent in January on a monthly basis. Production of machinery equipment retreated 3.2 percent, but semiconductor and automotive production gained 6.1 percent and 3.2 percent respectively.

The manufacturing shipment increased 0.4 percent, but inventory in the manufacturing industry lost 0.1 percent.

Manufactures posted an average capacity ratio of 78.3 percent in January, up 0.7 percentage points from the prior month.

Production in the construction industry grew 0.5 percent in January on a monthly basis, but the figure in the public administration sector reduced 3.2 percent.

The seasonally-adjusted retail sale, which reflects private consumption, tumbled 1.9 percent in January from a month earlier, recording the fastest slide in 18 months since July 2020.

The sale of durable goods diminished 6.0 percent on weak demand for imported cars and the supply disruption of locally-made vehicles.

The sale of semi-durable goods decreased 3.4 percent as the relatively warm weather cut demand for winter clothing, but the sale of non-durable goods, such as food and beverage, climbed 0.7 percent.

Facility investment expanded 2.5 percent in January from a month earlier on solid investment in transport equipment.

Completed construction rose 0.5 percent in January on a monthly basis, and construction orders went up 6.0 percent in January from a year earlier.

The cyclical variation factor for leading economic indicators, which gauges outlook for the future economic situation, fell 0.1 point over the month to 100.1 in January. It kept a downward trend for seven months in a row.

The reading for coincident economic indicators, which measures the current economic conditions, gained 0.6 points to 102.4 in the cited month, maintaining an upward momentum for the fourth straight month.