Roundup: S. Korea's industrial output growth falls to record low in 2014

South Korea posted a record low increase in industrial output last year, fueling worries that the economy may slip into a prolonged low growth trend, a government report showed Friday.

Production in all industries, including manufacturing, services, construction and public administration, gained 1.1 percent in 2014 from a year earlier, marking the lowest since the data began to be compiled in 2000, according to Statistics Korea.

Output among manufacturers recorded a "zero" growth in 2014 as carmakers failed to maintain normal operation on partial strikes throughout the year. It was the weakest since a 0.1 percent fall in 2009 when the global financial crisis hit the economy.

Auto production got normalized from December when industrial output increased 0.9 percent compared with the previous month, posting the three straight month of expansion.

Shipments and inventory in the manufacturing and mining sectors logged a negative growth in 2014, falling to the lowest since 2009.

Average operating rate of facilities among manufacturers declined 0.2 percentage points from a year earlier to 76 percent in 2014, the lowest since 74.4 percent tallied in 2009.

The April ferry sinking disaster, which killed 304 people, mostly high school students, weighed down on industrial activity as consumers refrained from spending money on entertainment and travel, the statistical agency said.

Low global oil prices had a positive impact on companies as cheaper oil reduced production costs. Production in service firms increased 2.2 percent last year, with retail sales growing 1.6 percent. Facility investment expanded 4.6 percent, but investment in the construction sector shifted from a 10.1 percent growth in 2013 to a 0.8 percent fall in 2014.

In December alone, production in the manufacturing and mining industries advanced three percent from the previous month. It was the biggest increase in more than five years.

Solid production in auto, and chips and parts, which jumped 6.3 percent and 4.4 percent each last month, bolstered expectations that industrial output may rebound in the first quarter of this year.

Retail sales in December rose 2.2 percent from a month earlier, with sales of semi-durable and durable goods up 5.9 percent and 3. 2 percent each.

Facility investment gained 1.7 percent last month as automakers and electronic companies raised expenditure to expand factories and fixed assets.

Construction work completed slid 3.2 percent on-year in December due to weak demand for public works, and construction orders, which reflects outlook for the construction industry, declined 3.3 percent.

The cyclical component of leading economic indicators, which reflects outlook for future business conditions, rose 0.2 points in December, with the figure for coincident economic indicators gaining 0.3 points. Endi