ID :
22076
Wed, 10/01/2008 - 16:12
Auther :
Shortlink :
http://m.oananews.org//node/22076
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S. Korea's industrial output growth slumps in August
SEOUL, Sept. 30 (Yonhap) -- South Korea's industrial output grew at the slowest pace in 11 months in August amid sluggish domestic demand and spreading concerns over a global slowdown, a government report showed Tuesday.
According to the report by the National Statistical Office (NSO), industrial
production expanded 1.9 percent last month from a year earlier, slowing sharply
from a 8.6 percent year-on-year advance in July. It marked the smallest growth
since September 2007 when the output contracted 3.1 percent.
Production growth stayed in the single digits for a fourth consecutive month
since May when it fell to 8.6 percent.
The August figure is far below a median estimate of 6.7 percent found in a poll
conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency.
"The data showed that spreading instability in the global financial sector has
started to take its toll on the real economy, denting South Korea's exports to
such major markets as the United States," said Jeon Min-kyu, an analyst at Korea
Investment & Securities. "This is just the beginning and things will very likely
get worse down the road."
The worse-than-expected figures come as the South Korean government is struggling
to cope with the fallout from the collapse of U.S. investment giant Lehman
Brothers and major American financial institutions.
The U.S. Congress's rejection of an emergency rescue plan for its ailing
financial sector sent shockwaves through global markets, hitting the South Korean
stock and currency markets hard.
The latest developments are casting a dark cloud over the Seoul government's
economic growth target for this year, which was recently lowered to below 5
percent from 6 percent due to downside risks both at home and abroad. Some
experts still see the revised target as considerably optimistic.
In the second quarter, Asia's fourth-largest economy expanded 4.8 percent
on-year, the lowest since the first quarter of 2007.
Inventories grew at a fast pace in August, signaling that the nation's export
sector may be losing steam, according to the NSO report. Inventories expanded by
14.4 percent last month from a year earlier, staying in the double digits for a
fifth consecutive month.
The facility operation ratio also remained weak, dropping 4 percent over the same
period. Compared with a month earlier, the ratio fell by 1.2 percent, the report
showed.
Sluggish consumption has been another headache for the government at a time when
exports show signs of flagging. Consumer sales growth slumped to 1.5 percent in
August from a year earlier, decelerating from the previous month's 3.9 percent
gain, according to the report.
Earlier in the day, Korea's central bank said that the nation's current account
shortfalls reached a record $4.71 billion in August, bringing its cumulative
loss for this year to $12.6 billion.
kokobj@yna.co.kr
(END)
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According to the report by the National Statistical Office (NSO), industrial
production expanded 1.9 percent last month from a year earlier, slowing sharply
from a 8.6 percent year-on-year advance in July. It marked the smallest growth
since September 2007 when the output contracted 3.1 percent.
Production growth stayed in the single digits for a fourth consecutive month
since May when it fell to 8.6 percent.
The August figure is far below a median estimate of 6.7 percent found in a poll
conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency.
"The data showed that spreading instability in the global financial sector has
started to take its toll on the real economy, denting South Korea's exports to
such major markets as the United States," said Jeon Min-kyu, an analyst at Korea
Investment & Securities. "This is just the beginning and things will very likely
get worse down the road."
The worse-than-expected figures come as the South Korean government is struggling
to cope with the fallout from the collapse of U.S. investment giant Lehman
Brothers and major American financial institutions.
The U.S. Congress's rejection of an emergency rescue plan for its ailing
financial sector sent shockwaves through global markets, hitting the South Korean
stock and currency markets hard.
The latest developments are casting a dark cloud over the Seoul government's
economic growth target for this year, which was recently lowered to below 5
percent from 6 percent due to downside risks both at home and abroad. Some
experts still see the revised target as considerably optimistic.
In the second quarter, Asia's fourth-largest economy expanded 4.8 percent
on-year, the lowest since the first quarter of 2007.
Inventories grew at a fast pace in August, signaling that the nation's export
sector may be losing steam, according to the NSO report. Inventories expanded by
14.4 percent last month from a year earlier, staying in the double digits for a
fifth consecutive month.
The facility operation ratio also remained weak, dropping 4 percent over the same
period. Compared with a month earlier, the ratio fell by 1.2 percent, the report
showed.
Sluggish consumption has been another headache for the government at a time when
exports show signs of flagging. Consumer sales growth slumped to 1.5 percent in
August from a year earlier, decelerating from the previous month's 3.9 percent
gain, according to the report.
Earlier in the day, Korea's central bank said that the nation's current account
shortfalls reached a record $4.71 billion in August, bringing its cumulative
loss for this year to $12.6 billion.
kokobj@yna.co.kr
(END)
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