South Korea industrial output growth at five-month low in July
02:55, 31 August 2021
South Korea’s industrial output rose 7.9% on-year in July, the slowest in five months, indicating an easing momentum in its economic recovery amid the spread of the Delta variant.
On a monthly basis, production of manufacturers, mines, and utilities industries, rose 0.4% against 2.3% increase in June, data from Statistics Korea showed on Tuesday. Output from the manufacturing sector was flat month-on-month and gained 7.6% year-on-year, falling from a 2.5% and 11.8% increases, respectively.
Output from services sector rose 0.2% on-month and rose 4.2% on-year, losing some steam from June, when the industry rose 1.6% on-month and 5.0% on-year.
Retail sales shrinks
In a press conference following the data release, senior statistician Eo Woon-sun said "output in in-person service segments declined due to the fallout of the fourth wave of the pandemic. But compared with previous waves of the pandemic, it fell by a smaller margin," as reported by Korea Herald.
The statistics agency also released retail sales data, showing a 0.6% on-month fall in July, in contrast with 1.4% rise in June. On annual basis, retail sales surged 7.9% – mainly due to low base comparison a year earlier – as compared with 1.6% increase in the previous month.
The number of daily COVID cases in South Korea topped 1,000 for more than 50 straight days, a relatively elevated figure for Asia’s fourth largest economy. Since July 12, Seoul metropolitan area, home to half of the nation’s 52 million populace, has been in strictest social distancing rules, Korea Herald further reported.
What is your sentiment on BTC/USD?
Korea economy recovers
In spite of the drag caused by the spread of the Delta variant, the South Korean economy is on track for post-pandemic recovery.
Bank of Korea last week maintained its projection for full-year growth of 4% as it lifted its key policy rate, making it the first mover among major Asian central banks.