Roundup: S. Korea's industrial output reduces for 3 months on weak exports

Industrial output in South Korea fell for three straight months due to sluggish exports that damaged production of large exporters, a government report showed Tuesday.

Production in all industries, including manufacturing, services, construction and public administration, declined 0.6 percent in May from a month earlier after posting falls of 0.4 percent in April and 0.5 percent in March, according to Statistics Korea.

The slowing industrial activity came as exports plunged more than 10 percent in May from a year earlier, keeping a downward trend for five months in a row.

Hit by the soured exports, output in the mining and manufacturing sectors reduced 1.3 percent in May from the previous month after falling 1.3 percent in April and 0.2 percent in March.

Production in communications equipment and oil refining sectors increased 22.1 percent and 3 percent each last month on a monthly basis, but those for automobile and semiconductor industries declined 3.7 percent and 4.8 percent respectively.

Exports in chips, cars and chemical products declined 7.9 percent, 3.5 percent and 4.3 percent each last month.

Inventory among manufacturers slid 1.1 percent in May from a month earlier, but the inventory-shipments ratio rose 0.1 percentage point to 127.3 percent in May, marking the highest in more than six years.

Manufacturers posted an average capacity rate of 73.4 percent in May, down 0.7 percentage points from the prior month.

Production among service companies dipped 0.4 percent on-month in May. Output in wholesale and retail sector slid 1.3 percent, and the figure for the science and technology industry reduced 3.2 percent.

Retail sales, reflecting private consumption, showed no change in May from the prior month. Durable goods sales fell 1.1 percent, but those for semi-durables and non-durables gained 0.8 percent and 0.3 percent each.

The first case of infection with Middle East Respiratory Syndrome (MERS) was reported on May 20, but it has little impact on private consumption last month as it was in an initial stage.

The MERS infection cases were unchanged at 182 for three straight days on Tuesday, indicating an abating spread of the viral disease.

Facility investment dipped 1.3 percent last month as companies still refrained from spending capital on expanding facilities and factories amid the lackluster exports and domestic demand.

Construction orders surged 84.5 percent in May from a year earlier due to the government's measures to bolster the housing market.

The cyclical component of leading economic indicators, which reflects outlook for future business conditions, rose 0.3 points in May from a month earlier, but the figure for coincident economic indicators declined 0.5 points. Endi