By Bae Keun-min
Staff Reporter

The output of the service industry contracted 0.4 percent in May from a year ago, marking the first drop in four months, due to the lackluster domestic consumption.



In particular, sectors including real estate and leasing, entertainment, and business supports, contracted to the worst levels.
The National Statistical Office (NSO) reported Tuesday the output of the whole service industry made the first year-on-year fall in four months after it rose 2.7 percent in February, 2.5 percent in March and 0.1 percent in April.

The contraction is attributable to sluggish domestic consumption resulting from on-going uncertainties on an economic recovery, an NSO official said.

Wholesale and retail sales shrank 2.5 percent in May over a year ago, keeping its downward curve for three consecutive months. Wholesale alone declined 1.5 percent year-on-year to record the first fall in six months.

Retail sales stretched its sliding curve to the 16th straight months with a 2.2 percent drop. Sales at department stores contracted 3.3 percent, while car and fuel sales fell 8.4 percent, having fallen for 11 straight months.

The restaurant business sector also decreased 3.2 percent in May compared with the same period in 2003.

Real estate and leasing sectors fell by 11.6, the largest downturn since the NSO started tabulating such data in January 2000. The output of entertainment, culture and sports-related sectors also posted a record high decline of 6.7 percent.

Business supporting services, such as computer operation and data processing, also recorded the first drop of 0.8 percent.

In contrast, both the telecommunications sector and transportation activities remained in positive territory in May, growing 4.1 percent and 8.9 percent, respectively in May from a year ago.

Public and individual services expanded 6.4 percent during the same period, it said.

The shipping sector jumped by 8.9 percent, while the financial industry also enjoyed an expansion of 3.4 percent.

The lodging and hotel sector expanded since July last year after it escaped from threats of SARS (severe acute respiratory syndrome). It grew by 42.2 percent in May from a year ago.

kenbae@koreatimes.co.kr