À̹ÌÁö È®´ë South Korea¡¯s industrial activity and domestic demand shriveled in February as the country grappled with the rapid spread of COVID-19.
The seasonally adjusted mining and manufacturing output in February dropped 3.8 percent from the previous month, accelerating from the 1.3 percent decline a month ago, Statistics Korea reported Tuesday.
The fall was the steepest since December 2008 when it plummeted 10.5 percent. Semiconductor output rose 3.1 percent but this was offset by a 27.8 percent plunge in automobiles due to supply disruptions from China.
The benchmark Kospi closed Tuesday up 2.19 percent at 1,754.64. The Korean won gained 0.37 percent, or 4.50, against the U.S. dollar to 1,219.50.
Factory operation averaged 70.7 percent in February, down 4.9 percentage points from the previous month. Inventory level ticked up 0.2 percent on month and 3.8 percent from a year earlier.
Service sector output shrank 3.5 percent from a month ago, the biggest fall since data compiling began in 2000.
Hospitality and restaurants dipped 18.1 percent as people avoided going out. The virus sapped travel demand, causing transportation and storage to fall 9.1 percent.
À̹ÌÁö È®´ë Retail sales dropped 6.0 percent, the biggest monthly decline since February 2011 when they fell 7.0 percent. Semi-durable goods like clothes tumbled 17.7 percent. Sales of durable goods like cars were off 7.5 percent, with non-durable goods like cosmetics down 0.6 percent.
Facility investment slipped 4.8 percent as spending in automobiles and other transportation equipment plunged 15.4 percent from production setbacks.
The coincident index, which shows the state of current economic activity, slid 0.7 point on month, the largest decline in more than 11 years. The leading index, an indicator of where the economy is headed, remained the same, reflecting the economic uncertainties as the coronavirus outbreak escalated to a global pandemic.
¡°A change in consumption patterns to prevent the spread of the virus has led to a big drop in service output and retail sales. Supply disruptions at automakers have also hit manufacturing output,¡± said Ahn Hyung-joon of Statistics Korea.
By Kim Hyo-jin
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]