Seoul's industrial output, retail sales decline in Q1 this year

Seoul, May 13 (IANS) Industrial output and retail sales in Seoul declined from a year earlier in the first quarter of this year, while the city's service sector remained relatively strong despite the broader economic slowdown, government data showed on Tuesday.

Seoul's industrial production dropped 2.1 percent on-year during the January-March period, mainly due to reduced output in the electricity and gas, food manufacturing and machinery equipment sectors, according to the data from Statistics Korea.

Nationwide, however, industrial output rose 2.4 percent on-year, supported by robust production in semiconductors, electronic components and pharmaceuticals, reports Yonhap news agency.

Retail sales in Seoul also fell 2.1 percent on-year in the first three months, largely due to weaker performance in duty-free shops and sales of automobiles and fuel.

Across the country, retail sales remained unchanged from the same period last year, reflecting mixed consumer sentiment amid economic uncertainty.

In contrast, Seoul's service output grew 1.2 percent on-year, backed by steady gains in the real estate, arts, sports and recreation sectors, the data showed.

"Amid low growth, we often see an uneven trend where some sectors perform well, while others lag behind," said Jeong Sung-kyeong, an official at Statistics Korea. "Nevertheless, the service sector in Seoul continues to show resilience, marking its 19th consecutive quarterly increase."

Meanwhile, exports fell in 10 out of the country's 17 major cities and provinces in the first quarter amid growing uncertainty surrounding U.S. trade policy, which appears to be affecting regional economies.

The number of regions with declining exports increased from seven in the fourth quarter of 2024 to 10 in the first quarter of this year, according to the report.

Noticeably, outbound shipments in Busan, the country's second-largest city, fell 3.1 percent on-year, the data showed.

—IANS

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