Roundup: S.Korea's industrial output posts biggest growth in over 4 years

South Korea's industrial production posted the biggest monthly growth in more than four years thanks to demand for smartphones and automobiles, a government report showed on Friday.

Output in all industries expanded 2.4 percent in September from a month earlier, after growing 0.3 percent in the previous month, according to Statistics Korea.

It marked the fastest monthly increase in four and a half years since March 2011 when the production jumped 4 percent. The industrial activity also kept an upward trend for four straight months.

The upbeat figure came as private consumption recovered on the government's efforts to stimulate the economy, leading to a stellar growth in production especially among chipmakers and automakers.

Auto output increased 5 percent in September thanks to strong demand for cars caused by a cut in consumption tax, and semiconductor production surged 17.2 percent due to robust demand for chips used in newly launched smartphones like Samsung Electronics' Galaxy Note5.

The government unveiled various stimulus measures, including a supplementary budget plan for the second half, to bolster up consumer demand, hit hard by the Middle East Respiratory Syndrome (MERS) outbreak that peaked in June.

The Bank of Korea (BOK) also lowered its benchmark interest rate by a quarter percentage point in June to an all-time low of 1.5 percent to reinvigorate the lackluster consumer spending.

During the July-September period, the industrial output increased 1.9 percent from the prior three-month period on the back of monetary and fiscal stimulus.

Production in the mining and manufacturing sector grew 1.9 percent in September from a month earlier, keeping an upward trend for four months in a row. During the third quarter, the output rose 1.5 percent, posting the first growth in four quarters.

Inventory among manufacturers gained 1.6 percent last month, but a factory utilization rate in the manufacturing industry averaged 75.1 percent in September, up 1.0 percentage point from the previous month.

Production among service companies rose 1.2 percent, with retail sales, which reflect domestic demand, growing 0.5 percent last month.

During the third quarter, the service industry's production went up 1.4 percent, and retail sales added 1.1 percent.

Facility investment advanced 4.1 percent on month in September due to an increase in the transport equipment sector. Machinery orders gained 2.4 percent on strong demand both in private and public sectors.

Activity among builders showed an upbeat picture as home transactions increased amid eased regulations on the mortgage financing and the record-low interest rate.

Completed construction expanded 4.9 percent in September from a month ago, maintaining a rising trend for five straight months.

Construction orders soared 121.8 percent on the back of demand for new homes.

The cyclical factor of leading indicators, which reflects an economic outlook, increased 0.5 points last month, and the figure for coincident indicators gained 0.7 points. Enditem