(LEAD) Industrial output flat in July; retail sales down, facility investment up

South Korea's industrial output remained steady in July compared to the previous month, according to data released on Monday by the Ministry of Data and Statistics. However, retail sales experienced a decline, while facility investment saw a significant increase.

Industrial production stayed unchanged in July after remaining the same in April, May, and June. The mining and manufacturing sectors, crucial to the economy, contributed to the slight uptick in output. Specifically, the electronic components segment saw a substantial 20.7% increase, while the automobile industry faced a 4.5% decline. Semiconductor output also grew by 0.5%.

Yet, the service sector contracted sharply by 1.3% in July, marking the most significant drop since February 2022. This decline was attributed to high consumer prices and a heat wave. Conversely, the information and communication sector saw a 3.5% rise, and the finance and insurance sector experienced a 4.8% decrease.

Retail sales, a key indicator of individual spending, fell by 2.4% in July. The main drivers were durable goods, such as cars, which saw a 7.7% decline, semidurable goods like clothes which dropped by 1.4%, and durable goods, including machinery for semiconductor production, which declined by 4.2%.

Facility investment, however, surged by 7.5% in July, the largest growth since February, driven by transportation equipment rising by 15.4% and machinery, including semiconductor production equipment, increasing by 4.2%.