Industrial output, retail sales, facility investment gain ground in February

Korea's industrial output, retail sales and facility investment increased from a month earlier in February, data showed Monday, marking the first time in 17 months that the three key indicators have risen simultaneously.

Industrial production rose 0.6 percent last month, reversing a downward trend that had persisted since September, except for a slight uptick in December, according to the data compiled by Statistics Korea.

Retail sales, a key gauge of private spending, climbed 1.5 percent in February from a month earlier.

Facility investment posted a sharp rebound in the cited month, surging 18.7 percent on-month after a significant decline in the previous month.

This marks the first time since September 2023 that all three indicators have increased simultaneously.

Despite the positive figures, the agency largely attributed the rebound to a base effect, as all indicators saw sharp declines in January due to fewer working days caused by the long Lunar New Year holiday.

The finance ministry, too, noted the rebound was largely due to base effects from the previous month's decline, as well as an increase in working days and the early distribution of EV subsidies.

"Given the volatility in monthly figures, persistent weakness in the construction sector and risks, such as U.S. tariff impositions, downside risks to the economy remain significant," the ministry added.

In the manufacturing sector, production of electronic components jumped 9.1 percent on-month, while electrical equipment, including transformers, rose 6 percent.

On a yearly basis, overall industrial output increased 1.2 percent in February.

Retail sales showed a mixed performance. Sales of home appliances and other durable goods surged 13.2 percent on-month, offsetting a 1.7 percent decline in sales of semidurable goods, such as clothing.

Notably, automobile sales jumped 13.5 percent on-month, marking the largest growth since March 2020.

"Last year, electric vehicle subsidies were distributed starting in late February, but this year, they were provided earlier in the month, leading to increased car sales," said Lee Doo-won, an official at Statistics Korea.

However, compared with a year earlier, retail sales fell 2.3 percent.

The construction sector also rebounded, rising 1.5 percent on-month after a prolonged downturn that began last October. However, compared with a year earlier, output in the sector plunged 21 percent.

Meanwhile, construction orders dropped 6.9 percent from the previous month, marking the 10th consecutive month of decline. (Yonhap)