By Kang Seung-woo
Staff reporter
The nation's economic recovery is showing signs of losing steam, with its indicator for future economic conditions falling for the fourth month in a row.
Statistics Korea announced Monday that the leading index for Asia's fourth-largest economy dropped by 1.2 percentage points in April.
The index notched a 0.3 percentage point decline in January, the first fall in 13 straight months, and it has failed to rebound.
The continued deceleration is attributed to downside risks in the second half of the year, such as the lingering southern European debt crisis and heightening tension on the Korean Peninsula, which many believe is hampering the economic recovery.
"The decline in the leading index was mainly due to the base effect of 2009. The figure showed a steep increase last year from 2008 when the nation was hit by the global downturn," said Jung Gyu-don, director of the economic statistics bureau at Statistics Korea.
"We cannot say that the economy will likely lose steam down the road based on the figures. Given the continued improvement in the current economic condition indicator, the economy still remains on the path to recovery," he added.
The gloomy data came a few days after the central bank reported that manufacturers' business confidence dropped in May for the first time in six months. The business sentiment index dropped to 104 from 107 to a three-month low for June.
Meanwhile, the nation's industrial production soared for the 10th consecutive month.
The statistical agency reported that output in mining and manufacturing rose 19.9 percent compared with a year earlier.
Although production growth slowed from March's revised 22.5 percent, the figures have remained strong since they moved into positive territory last July.
"Production in April was driven by robust demand for semiconductors and electronics parts, though output of automobiles and others declined," it said.
An official of the strategy and finance ministry said, "Thanks to export growth and improving employment conditions, the recovery is expected to continue."
"However, it could be affected by the euro zone's fiscal problem and geopolitical risks."