South Korea's industrial output expanded 1.8 percent last month from a year earlier, hinting that export recovery boosted production in the manufacturing sector, a government report showed Friday.
All-industry index, which gauges overall industrial activities, stood at 132.7 in November, up 1.8 percent from a year before, according to Statistics Korea. The figure was a rebound from a 0.5 percent contraction in the previous month.
From a month earlier, the index rose 1.1 percent last month, rebounding from a 0.3 percent fall for October.
Output in the mining, manufacturing and electricity & gas sectors expanded 2.9 percent in November from a year before, turning around from a 0.8 percent reduction in the prior month. From a month earlier, the production increased 2.3 percent last month.
The turnaround in the production was attributable to export recovery. "Solid global demand for new smartphones and tablets is supporting production and exports from key tech producers. Car output is also recovering from strikes at auto plants," Moody's Analytics said in a report.
The country's exports jumped 5.9 percent in November from a year earlier, accelerating from a 3.8 percent growth in October and a 0.6 percent gain in September. Faster growth in exports sent the November current account surplus to a new record high of 6.88 billion dollars.
Production in the manufacturing sector, which makes up around half of all industrial output, increased 2.9 percent in November from a year earlier due to an expansion in chips, parts and chemical products. From a month earlier, the output grew 2.8 percent, up from a 0.7 percent rise in the previous month.
Shipment in local manufacturers increased 1.5 percent on-year in November, with the on-month figure posting a 1.3 percent rise. The increase in chips and parts offset a reduction in machinery equipment.
Local manufacturers operated at an average capacity of 77.4 percent last month, up 1.5 percentage points from the previous month. The factory utilization rate stood at 78.4 percent a year before.
Production in the service industry advanced 2 percent on-year in November, with the on-month figure logging a 0.8 percent growth last month.
The South Korean economy saw its retail sales climb 3.9 percent in November from a year earlier, up from a 1.9 percent expansion in the prior month. From a month earlier, the sales increased 2.3 percent.
Despite the upbeat figure, households remained cautious on consumption because of high indebtedness, falling housing prices and rising rents.
Meanwhile, facility investment showed a sharp decline last month as local companies were reluctant to spend capital amid lingering uncertainties such as the U.S. fiscal cliff issue and the eurozone fiscal crisis.
Facility investment logged a 9.3 percent drop in November from a year before, down from a 1 percent decline for October due to the sluggish capital spending in the general machinery and transportation equipment sectors.
The value of construction completed at a constant price fall 2. 2 percent on-year in November, with the figure for construction orders at a current price plunging 17.4 percent last month.
The leading index of economic indicators, which gauges business activities around six months ahead, rose 0.3 point on-month to 99. 4 in November. The coincident index, measuring current economic conditions, added 0.1 point to 98.2 over the same period.
