South Korea’s industrial activity and consumer spending sank from depressed sentiment amid concerns of troubles at shipping and shipbuilding industry in April, with manufacturing output in its largest on-year fall in nine months and the factory running at the poorest level in more than seven years.

According to preliminary April output data released by Statistics Korea on Tuesday, seasonally adjusted manufacturing and mining output last month plunged 2.8 percent from the same month in 2015, accelerating from 0.6 on-year drop in March and the biggest fall since 3.4 percent loss in July 2015 amid outbreak of the Middle East Respiratory Syndrome. Against the previous month, factory output fell 1.3 percent following the same on-month drop in March.

Across-the-board output including the service sector slipped 0.8 percent from the previous month, reversing from 0.7 percent gain in March. On year, it edged up 0.8 percent and significantly slowing from 2.4 percent gain in March.

Both corporate and consumer sentiment was hurt after the government decisively turned eager in cleaning up the ailing industries starting with shippers and shipbuilders. Little sign of relief from the external front also dampened industrial activity.

Factory operation rate in April was registered at 71.0 percent, lowest since 69.9 percent in March 2009 when the economy worldwide had been rocked by Wall Street-triggered meltdown.

Adding to the gloom in export-driven economy were signs of upset in the fragile recovery in domestic demand.

Shipment for exports shrank 2.0 percent in April from the previous month, extending 1.9 percent drop in March. Shipment for domestic market contracted 1.7 percent on month, sharp reversal from 3.1 percent gain in March.

Production of automobile plunged 6.3 percent on month and 8.7 percent on year. Output in transportation equipment that concerns the troubled shipbuilding industry shrank 12.0 percent on month and 11.3 percent. Electronics component output also slipped 1.8 percent o month and 12.7 percent on year.

Retail sales - a barometer for consumption - slipped 0.5 percent on month, reversing 4.3 percent gain in March.

Capital investment by companies rose 3.4 percent in April from the previous month, slowing from 5.8 percent gain in March. It dropped 2.7 percent on year.

Output from the service sector gained 0.5 percent in April on month and 2.1 percent on year.

By Kim Gyu-sik

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]