Semiconductor factories of Samsung Electronics in Pyeongtaek, Gyeonggi-do Province (Samsung Electronics)

By Kim Hyelin

Industrial output last month rose 2.5% from January, the highest growth in five years and eight months.

A 28.2% surge in semiconductor production helped drive the increase, while rises in facility investment and construction led to the overall improvement of economic indicators.

The Ministry of Data and Statistics on March 31 said this in its report on industrial output trends in February.

Mining and manufacturing saw output grow 5.4%, with the sector's production index (117.9) reaching an all-time high. Semiconductors recorded their highest rate of increase in over 38 years since 1988 and their index (215.4) also broke a record.

Growth in electronics and telecommunications (20.9%) and non-metallic minerals (15.3%) also helped support the rise, while service industry output inched up 0.5%.

Investment indicators also showed major improvement. Facility investment jumped 13.5% from the previous month, its largest rise since November 2014 thanks to surging investment in transportation equipment such as cars (40.4%) led by the early adoption of electric vehicle subsidies.

Construction also rebounded. Completed projects (constant prices), which gauge the performance of builders, soared 19.5% for their highest increase since relevant statistics were launched in July 1997.

Also seeing growth were building construction (17.1%) and civil engineering (25.7%). Construction orders, an indicator of future economic conditions, also continued their year-on-year growth for the fourth consecutive month.

Consumption stayed flat. Semi-durable goods such as clothing (minus 5.4%) and durable goods such as communication devices and computers (minus 1.5%) declined, but this was offset by growth in nondurable goods such as food and beverages (2.6%) because of the Seollal (Lunar New Year) holiday.

The cycle variation value of the coincident composite index, which measures the latest economic conditions, rose eight-tenths of a percentage point for its biggest rise in over 15 years. That of the leading composite index, an indicator of future economic conditions, went up six-tenths of a point.

kimhyelin211@korea.kr