(LEAD) S. Korea's industrial output shrinks 8.2 pct in April

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By Koh Byung-joon
SEOUL, May 29 (Yonhap) -- South Korea's industrial output continued to decline in
April but the downturn seems to be easing, raising hopes the worst for the
nation's economy might be nearing an end, a government report showed Friday.

According to the report by the National Statistical Office (NSO), production in
the mining and manufacturing sectors shrank 8.2 percent last month from a year
earlier, compared with a 10.5 percent on-year decline in March.
The April data marked the first time that output has decreased by a single digit
after contracting 10 percent or higher over the previous five months. The figure
is roughly in line with a median estimate of an 8.4 percent fall in a poll
conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency.
From a month earlier, production grew 2.6 percent, keeping its month-to-month
expansion for four straight months since January, the report showed.
Service-sector output also rose 1.6 percent from a year ago.
"The figures can be understood as a sign that the economy might be bottoming out
from a sharp contraction late last year," Yun Myung-Joon, director of the NSO's
short-term industry statistics division, told a press conference.
The latest industrial production data comes amid cautious optimism that the
economy, Asia's fourth-largest, might be gaining some momentum for a turnaround
from what could be the worst downturn in more than a decade.
According to the Bank of Korea on Thursday, South Korea's current account
amounted to US$4.28 billion in April, the third straight month of surplus since
February.
Earlier, the central bank said the nation's gross domestic product grew 0.1
percent during the first quarter from three months earlier, raising hopes the
pace of economic downturn might be easing. For the last quarter of 2008, GDP
plunged 5.1 percent.
Business sentiment also seemed to be improving. South Korean manufacturers'
sentiment for June rose to the highest since October as stabilizing currency and
improving economic indicators fueled corporate optimism.
Job losses eased as well. The unemployment rate fell to 3.8 percent in April from
the previous month's 4 percent and job reduction eased with 188,000 positions
being eliminated from payrolls compared with a year earlier. In March, the
economy shed 195,000 positions.
South Korea's government has been pushing for diverse stimulus measures including
tax cuts and expanded fiscal spending aimed at creating jobs and bolstering
sagging domestic demand.
Despite the efforts, companies and consumers remained reluctant to spend as the
economic outlook remains cloudy, according to the data.
Facility investment plunged 25.3 percent in April from a year earlier compared
with a 23.3 percent decline in March. Consumer goods sales also declined 4
percent over the same period, the data showed.
kokobj@yna.co.kr
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