South Korea's industrial output rose 2.5% in February from the previous month, the fastest growth in five years and eight months. Government data showed retail sales unchanged while facility investment jumped 13.5%. The Middle East crisis has had minimal impact so far.
Data from the Ministry of Data and Statistics, released Tuesday, showed South Korea's industrial production rose 2.5% on-month in February, rebounding from a 1.3% decline in January. This marked the fastest increase since June 2020, when it jumped 2.9%. Mining and manufacturing output advanced 5.4%, the steepest gain since June 2020, with semiconductors surging 28.2% amid the AI boom, according to Yonhap.
Retail sales, a key gauge of private consumption, remained unchanged from January. Semidurable goods like clothing fell 5.4%, durable goods including home appliances dropped 1.5%, while nondurable goods such as food and beverages rose 2.6%.
Facility investment climbed 13.5%, driven by machinery and transportation equipment. Lee Doo-won, a ministry official, said, "The effects of the Middle East crisis that broke out on Feb. 28 may appear as some signals in February's data, but the full impact is expected to be seen starting in March."
