S. Korea's industrial output slows to 2.8 pct in Dec.

SEOUL, Jan. 31 (Yonhap) -- South Korea's industrial output grew at a much slower pace in December in the face of persistent global economic uncertainties, a government report showed Tuesday. According to the report by Statistics Korea, production in the mining and manufacturing industries moved up 2.8 percent last month from a year earlier, slowing from a 5.8 percent gain in November. Industrial production, however, fell 0.9 percent on-month in December, marking the third month in a row that numbers declined. In November, it shrank 0.3 percent, the report said. "Last month's weak output reflected minus growth in audio-video and communications as well as the machinery sector," the statistical office said. The country's service sector expanded a mild 1.6 percent on-year in December, helped by demand in the transportation and education areas although zero growth was posted compared to the month before. For the whole of 2011, industrial output in mining and manufacturing rose 6.9 percent on-year, with the service sector posting a gain of 3.2 percent. Retail and construction sectors gained 1.5 percent and 0.5 percent, respectively, compared to December 2010, while facility investments contracted 2.1 percent from the year before, the report showed. Reflecting the overall sluggish output, the country's factory operating rate fell 1.5 percentage points from the previous month to 77.6 percent of capacity in December, with inventory gaining 2.8 percent vis-a-vis the previous month. The report also showed industrial output for all South Korean industries, including manufacturing and services sectors, gaining 1.9 percent last month, down from a growth of 3.4 percent in November. (END)