Outlook Index Falls Again

By Lee Hyo-sik

Staff Reporter

A key economic outlook index dropped in July for the eighth consecutive month, according to the National Statistical Office (NSO) Friday.

The 12-month change in leading composite index came to 0.1 percent, down from 1.2 percent in June. The coincidence index, which reflects current economic conditions, also declined to 99.8 from 99.9, falling for the sixth consecutive month.

Lee Tae-sung of the NSO, said falling indices meant the economy would continue to head downward, although the pace of the slowdown has decreased in view of the upturn in industrial output last month.

Industrial production grew at a faster rate of 9.1 percent in July from a year ago, up from a 6.8 percent gain the previous month. After adjusting for seasonal factors, production fell 0.2 percent from June, however. The services industry output grew 3.9 percent, compared with a 2.9 percent increase the previous month.

Retail sales rose 3.9 percent from a year ago on rising sales of electronics and clothes, up from June's 1.1 percent year-on-year drop, while corporate facility spending on machinery and telecommunications increased 10.7 percent, compared with a 4.4 percent increase the previous month.