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(2nd LD) S. Korea's industrial output grows for 4th month in Oct
SEOUL, Nov. 30 (Yonhap) -- South Korea's industrial output grew for a fourth straight month in October as factories produced more semiconductors and visual and audio equipment, amid signs of a faster-than-expected economic recovery, a government report showed Monday.
According to the report by the Statistics Korea, production in the mining and manufacturing sectors expanded 0.2 percent last month from a year earlier. This marked an advance for four straight months since July when production started to grow after a protracted slump.
The latest output figure, however, is lower than a 3.9 percent annual advance predicted in a poll conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency. Production also fell 3.8 percent from a month earlier after a revised 5.6 percent growth, the report showed.
"The on-month decline is mainly due to less working days in October as the Chuseok harvest holiday fell in that month unlike last year, when it came in September. Except that, output still expanded 4.2 percent," Yun Myung-joon, director of the agency's short-term industry statistics division, told a press conference. "We can still say that the economy continues rebound as output, consumption and investment are all increasing."
Industrial output kept shrinking since late last year when the global financial markets and economy were hurled into chaos by the collapse of Lehman Brothers. It, however, turned positive in July for the first time in 10 months and remained in positive terrain ever since.
With exports and domestic consumption showing signs of rebound, optimism is growing that the Korean economy is fast pulling out of the downturn. Reflecting latest economic conditions, major think tanks at home and abroad are revising upward their growth outlooks for South Korea.
In mid-November, the Organization for Economic Cooperation and Development predicted the nation's gross domestic product will grow 0.1 percent this year before expanding 4.4 percent in 2010. It was the first time that South Korea's economy was forecast to avoid negative growth this year.
According to the Bank of Korea, the country's gross domestic product expanded 2.9 percent during the third quarter from three months earlier, a sharp turnaround compared with a 5.1 percent plunge posted in the final three months of 2008.
Other data unveiled along with the latest output figures support the upbeat mood, indicating that local companies might turn positive about the economy.
According to the report, consumer goods sales also grew 9.8 percent on brisk demand for vehicles, car fuel and electronics goods, marking the sixth straight month of on-year expansion.
Facility investment by companies grew 0.3 percent from a year earlier, keeping its expansion for a second straight month. The nation's average factory operation ratio, however, dropped to 77.3 percent from 80.3 percent in September.
"In September, tax incentives for car sales resulted in ramped-up operation among automakers. Though the figure dropped slightly from a month earlier in October, the overall facility operation ratio still remains robust," Yun explained.
kokobj@yna.co.kr
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