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Industrial Output Falls in July

Written: 2016-08-31 13:07:25Updated: 2016-08-31 13:11:48

Industrial Output Falls in July

South Korea's production, investment and consumption indices all fell in July, raising concerns of an economic slowdown in the second half of the year.
 
It was the first time in six months that the three gauges fell at the same time.
 
According to Statistics Korea on Wednesday, overall industrial output fell zero-point-one percent on-month in July. After retreating zero-point-seven percent in April, industrial output rose two percent in May and zero-point-six percent in June, but returned to a decline in three months.
 
Although manufacturing output improved, service output slipped zero-point-seven percent on-month due to falls in the science and technology sectors.
 
Facilities investment dropped eleven-point-six percent. It was the widest fall in 13 years and six months due to limited investment by automobile and shipbuilding companies.
 
Retail sales, which are indicators of consumption, fell two-point-six percent.
 
Statistics Korea said car sales decreased due to a halt in the individual consumption tax cut. The sweltering heat also dampened outdoor activities, which lowered service output for the first time in six months. 

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