1st LD: S.Korea's industrial output, consumption, investment grow in 2017

SEOUL, Jan. 31 (Xinhua) -- Industrial output, private consumption and facility investment in South Korea grew last year thanks to brisk export amid the global economic recovery, a government report showed Wednesday.

Production in all industries advanced 2.4 percent in 2017, after gaining 3 percent in the previous year, according to Statistics Korea.

Output in the mining and manufacturing industries rose 0.6 percent last year, after increasing 1 percent in the prior year. Manufacturers posted a factory utilization rate of 71.9 percent in 2017, down 0.7 percentage points from the previous.

Services industry production expanded 2.5 percent, bolstering the overall industry production last year.

However, the production in the lodging and restaurant businesses declined 2.9 percent, marking the biggest decline since the statistical agency began compiling the relevant data in 2000.

It was mainly attributable to the falling number of Chinese tourists to South Korea in 2017.

Private consumption gained 2.7 percent in 2017, but it was the lowest growth since 2014.

Facility investment soared 14.1 percent on demand for machinery equipment.

The finance ministry said in a statement that the recovery trend in industrial production was forecast to continue this year amid the global economic recovery and its consequent exports expansion of South Korea.

In December alone, production in all industries rose 0.2 percent compared with the previous month. The production grew 1.3 percent in November after falling 1.8 percent in October.

Production in the mining and manufacturing industries declined 0.5 percent in December from a month earlier as output in car and auto parts declined amid weak demand from China, the world's largest automobile market.

Manufacturers logged an average operating capacity rate of 70.4 percent in December, down 0.8 percentage points from the previous month. It was the lowest since August 2016.

Inventory among manufacturers increased 1.3 percent last month.

Services industry production inched up 0.2 percent in December from a month ago as the finance and insurance sectors showed brisk activity amid the stock market's boom.

Retail sales, which reflect consumer spending, fell 4 percent, marking the fastest reduction in almost seven years.

Construction completed dipped 0.3 percent, but facility investment advanced 8.9 percent in December as demand for semiconductor equipment increased on brisk export of semiconductors. Enditem