By Bae Keun-min
Staff Reporter

Despite a 16-month high for business investment and double-digit growth in industrial production, major indicators tracking current and future business conditions have fallen for three consecutive months to June.

The National Statistical Office (NSO) said Thursday that industrial output jumped 12.3 percent last month from a year ago, thanks to the brisk performance of semiconductors, visual and audio communication devices and automobiles.

After adjusting for seasonal factors, the output decreased 2 percent in June from May as growth in export shipments slowed from 28.8 percent in May to 20.6 percent last month.

Factories were on average running at 79.8 percent of their full capacity, down 1.5 percentage points from May.

Despite the gain in output, the cyclical component of the coincident composite index, which indicates current economic health, edged down 0.8 point to 98.9 in June, falling for the third straight month.

The so-called 12-month smoothed change in the leading composite index, which forecasts a turning point in business conditions, was down 0.1 percentage point to 2.9 percent, also dropping for the third month in a row.

``It is hard to forecast where the economy is heading. However, the economic indices’ three straight months of decline do not seem to be a good sign,’’ said Kim Min-kyung, an NSO director. ``But we need to wait and see whether the trend will continue another couple of months,’’ she added.

By industry, semiconductor output grew by 53.8 percent over a year ago, while that of visual and audio communication devices grew by 22.9 percent. Production of cars increased 14.3 percent while output of mechanical equipment rose 12.5 percent over a year ago.

Wholesale and retail sales expanded 1.6 percent in June from a year ago on the back of a recovery in car and fuel sales.

For the first time in 16 months, automobile sales rose for a 3.1 percent gain. Retail sales also rose by 0.4 percent, bringing the first upward move in four months.

Investment in facilities soared by 7.9 percent last month over a year ago for the biggest gain since February last year when the growth rate was 8.9 percent, the NSO reported.

Construction orders topped 7.04 trillion won in June, the largest monthly amount for this year. But the volume shrank 36.9 percent from a year ago as orders in June last year surged by a record high level from the year before.

kenbae@koreatimes.co.kr