Roundup: S.Korea's industrial production falls in 5 months on weak exports

Industrial production in South Korea fell for the first time in five months due to weak exports that offset a recovery in private consumption, a government report showed Monday.

Output in all industries reduced 1.3 percent in October from a month earlier, according to Statistics Korea. It was the first decline after rising 0.6 percent in June and July, 0.3 percent in August and 2.5 percent in September each.

The figure also marked the biggest monthly reduction in nine months since January's 1.9 percent slide.

The slump in industrial production was attributable to sluggish exports, which account for about half of the Asia's No.4 economy, resulting in a slowdown in manufacturing industry.

The country's exports tumbled 15.9 percent in October from a year earlier, posting the largest monthly decline in more than six years.

Hit by slow exports, production in the mining and manufacturing industries dipped 1.4 percent in October from a month earlier. Output in chemical products fell 4 percent as some companies entered the regular closure period for maintenance, and auto production reduced 2.8 percent on sluggish activity in auto parts makers.

Inventory among manufacturers declined 2.1 percent on-month in October, while manufacturers posted a factory utilization rate of 73.8 percent in October, down 1.4 percentage points from the previous month.

Production in the service industry inched up 0.2 percent on the back of a growth in real estate and wholesale & retail sectors that increased 2.1 percent and 1.9 percent respectively.

Meanwhile, retail sales, which reflect private consumption, advanced 3.1 percent on-month in October thanks to government measures to stimulate consumption such as the introduction of the Korean version of Black Friday.

The figure marked the highest increase in 57 months since January 2011 when the retail sales climbed 4 percent.

The government introduced the so-called "Black Friday" seasonal discount period from October this year to boost consumer spending by encouraging retailers like department stores and discount chains to hold discount events in order to sell off inventories.

Sales in non-durable goods, including food and beverage, fell 1.6 percent last month, but sales in semi-durable goods like clothing surged 8.1 percent. Durable goods sales jumped 7.7 percent.

Facility investment dipped 0.8 percent in October from a month earlier, but machinery orders advanced 6 percent on demand from automakers and transport equipment manufacturers.

Completed construction reduced for the first time in six months, but construction orders jumped amid a growth in home transactions.

The cyclical factor of leading indicators, which reflects an economic outlook, rose 0.2 points in October from a month ago, with the figure for coincident indicators gaining 0.3 points. Endit