Anchor: South Korea's industrial output and facility investment dropped in May after a two-month rebound. An index reflecting present economic activities rose, but the outlook remains less than rosy, according to the government stats office. 
Celina Yoon has more. 

Report: Statistics Korea on Friday said industrial output fell point-five percent in May from a month earlier, ending a brief rebound in March and April.

While production in the service sector increased point-one percent, sluggish manufacturing and construction pulled down the overall figure. 

Of note was a sharp decline in oil refining production, which dipped 14 percent on-month due to weak exports and a high base effect, according to the government. Production in metal processing also dropped three-point-six percent.

Investment indices were also down in the month of May. Facility investment dropped eight-point-two percent from the previous month due to decreased investment in semiconductor manufacturing and transportation equipment. 

Retail sales, meanwhile, rose point-nine percent last month thanks to increased sales of warm weather apparel and air conditioners. 

The coincident index, which gauges present economic activities, rose point-two points, the first uptick in 14 months.

However, the stats office was quick to dispel optimism about its latest figures, pointing out that the leading indicator forecasting the economy's future cycle was down point-two points. 

South Korea has been among the countries hardest hit by the drawn-out trade dispute between the U.S. and China, which are also its two largest importers. 

Korean exports overall have contracted continuously since December, and domestic demand remains fragile.

Further, the economy contracted point-four percent in the first quarter of the year, marking the worst such performance in over a decade.

Amid sagging economic figures, Seoul plans to announce economic policy directives for the second half of the year next week, which will include measures to boost the economy through investment, exports and consumption.
Celina Yoon, KBS World Radio News.