Positive recovery signs detected in S.Korea: report

Positive signs emerged in the South Korean economy as recent economic data showed upbeat picture, a government report showed Friday. "Positive signs spread over domestic demand recovery though not solid,"the Finance Ministry said in its monthly economic report called Green Book.

The report said economic indicators, including industrial output, retail sales, facility investment and employment, are gradually improving though low headline inflation continued.

In December, retail sales were upbeat as auto sales by local carmakers jumped 27.2 percent from a year earlier. Credit card usage grew 8.7 percent last month, and gasoline sales rose 1.6 percent.

Sales at discount outlets and department stores slid 3.6 percent and 0.3 percent each in December. It was down from falls of 4.7 percent and 6.5 percent each in November.

Construction investment declined 1.7 percent in November, but facility investment expanded 13.1 percent during the same month. Production in the mining and manufacturing industries grew 1.3 percent in November on solid demand for cars and chips.

Job creation was 438,000 in November from a year earlier, but consumer prices rose 0.8 percent in December on lower global oil prices, boosting worries about deflation.

Exports in December increased 3.7 percent on demand for locally- made mobile phones, steels and chips. Trade surplus posted 5.78 billion U.S. dollars last month.

The ministry, however, said that external uncertainties remained, citing the possible interest rate hike in the United States, the weak Japanese yen and economic turmoil in oil producing countries caused by cheaper oil. Endi