S. Korean industrial output falls 1.5 percent in April

South Korea's industrial output fell 1.5 percent in April from the previous month due to a decline in production of autos, mobile telecommunication equipment and ships, the National Statistical Office (NSO) said in a report Monday.

"Labor disputes, high oil prices affected output of cars, while introduction of cheap products in foreign markets hurt mobile telecommunication exports," said Choi In-keun, the head of the NSO 's economic statistics bureau.

According to the report, auto production dropped 6.3 percent in April compared to the previous month, while semiconductor output edged up 1.1 percent.

Factories operated at an average of 79.1 percent of capacity in April, a drop of 2.4 percentage points from March. Retail sector output pulled off a 0.2 percent monthly gain in April, with annual growth reaching 5.2 percent.

South Korea's economy is recovering after a two-year slump, helped by a recovery in private spending and strong overseas demand.

The economy, which grew 4 percent last year, is expected to expand around 5 percent this year on improvements in consumer spending. High oil prices and fluctuating foreign exchange rates have recently caused some private think tanks to reconsider growth targets.

Source: Xinhua