By Bae Keun-min
Staff Reporter

Industrial output grew 10.4 percent in December over November, marking the highest monthly gain in 2003. But consumption and investment fell during that same period.

The double-digit expansion was made possible due to strong exports despite sluggish consumption, according to the National Statistical Office (NSO).

Consumption, as measured by wholesale and retail sales, fell for 10 straight months to December, while corporate investment in facilities fell for six consecutive months.

The NSO reported on Friday that industrial output rose for seven consecutive months with the largest gain since the 11.4 percent recorded in December 2002 coming last month.

``Despite slow domestic demand, strong export performances in the semiconductor, automobile and chemical industries bolstered the December growth,’’ the NSO said.

Industrial output grew by 7.4 percent in the fourth quarter of 2003, with an overall 5 percent average for the year. This marks a slight decline from the 8 percent in 2002.

Last month, factories were running at an average of 80.9 percent of their full capacity, up 1.2 percentage points from November.

Consumption shrank 1.5 percent in December from the preceding month. For the past 10 consecutive months, consumption growth was negative. But the decline slowed last month from a 3.7 percent drop in November.

Corporate facilities investment fell by 2.1 percent in December, marking a fall of 6 straight months. The 2.1-percent fall, however, is much better than previous month’s negative 8.3 percent, raising hopes that an economic recovery is in progress.

Last year, investment fell by 4.6 percent over 2002 numbers _ the lowest in five years, when it plunged by 37.7 percent in 1998.

Wholesale and retail sales also fell to a five-year low of minus 1.3 percent in 2003 since the negative 12.7 percent growth was recorded in 1998.

After adjusting for inflation, the coincident index, which indicates current economic health, rose 0.7 point to 101.6 last month over November, up for five straight months.

The leading index, which forecasts economic trends three to six months in advance, gained 0.4 percentage point to 2.5 percent for the period.

``Consumption and investment have shown no visible signs of an upturn, but the economy is on a rising curve with strong exports,’’ the NSO said.

kenbae@koreatimes.co.kr