Real Economic Decline Slows in February

February industrial production slightly receded and the leading composite index swung to an uptrend in 14 months.

Though it is early to bring up an economic recovery, some are voicing that the worst ever economic decline began to decelerate from its peak pace.

According to 'Industrial Activities during February 2009' disclosed by the National Statistical Office(NSO) on March 31, mining and manufacturing output fell 10.3 percent year-on-year. Taking into account operating days and Lunar New Year holiday, the figure saw a 15.5 percent year-on-year drop.

Services production each illustrated a 0.1 percent year-on-year and 1.2 percent month-on-month accretion.

Consumption goods sales contracted 6.2 percent year-on-year, but expanded 5.0 percent month-on-month. February capacity utilization in the manufacturing industry came in 66.7 percent on average, 5.3 percentage points higher against January.

In particular, the leading composite index designed to forecast the future economic situation climbed 0.5 percentage points from the figure recorded in January.

However, facility investment, a key to an economic rocovery, failed in avoiding sluggishness plunging 21.2 percent year-on-year with reduced investment in machinery including semiconductor equipment, while domestic machinery orders, a leading index of facility investment, diminished 28.8 percent year-on-year.

Meanwhile, March manufacturing business confidence was found to have considerably improved.

[Eun-jung Kim / JYJ]

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