Sales at local department stores and discount chains fell in March from a year earlier, government data showed Tuesday, fueling worries that consumer spending remains weak despite some signs of economic recovery,
According to data from the finance ministry, department store sales dropped 5.4 percent on-year last month, while discount chain sales shrank 7.4 percent.
Department store and discount chain sales contracted on-year from September through January, before rebounding in February, helped by a rise in consumption brought on by the Lunar New Year holiday.
The latest findings published in the ministry’s Green Book, however, showed sales of domestically produced passenger vehicles moving up 5.5 percent on-year, a turnaround from a 5.5 percent decrease in February. The data also showed online shopping sales, another barometer of consumption, surging 11.1 percent.
Sales of gasoline advanced 4.2 percent on-year in March, the third consecutive month of increase, with payments made by credit cards gaining 5.7 percent.
“March showed conflicting data in private spending with numbers for department stores and discount outlets falling, while online shopping malls posted solid gains,” the ministry said.
The data comes as the government said Asia’s fourth-largest economy is showing signs of growth, although any gains remain weak and inconsistent.
Industrial output numbers and employment numbers rose in February along with consumer and business sentiments, but inflation remained weak, a clear indication that spending has not picked up.
Corporate facility investment rose 3.6 percent on-month in February, while exports contracted 4.2 percent on-year last month.
The latest economic assessment report then said the United States, which led global economic growth in recent months, is showing signs of slowing down due to unseasonably cold weather and the strengthening of the U.S. greenback, which is hurting exports.
Touching on the state of the national economy, Finance Minister Choi Kyung-hwan told a ministerial meeting that many economic indicators have started to bounce back after an initial poor showing.
The latest economic indicators show the country’s recovery getting back on track with improvements taking place in the real estate and stock markets, he said, adding low interest rates and crude prices are all exerting a positive impact.
“Such developments will improve consumer and corporate sentiment,” he said, hinting that overall market sentiment is critical for creating local demand that is linked to economic growth.
The official also said the landmark agreement to resolve Iran’s nuclear ambitions last week can create new opportunities for South Korean companies abroad. (Yonhap)
