S Korean economy becomes sour on temporary factors

South Korean economy became sour recently due to temporary factors such as labor strikes of local automakers and a series of typhoon, the finance ministry said Tuesday. "Our economy saw stable consumer prices and employment recently, but key economic indicators showed weak performance due partly to one-off factors such as labor strikes and typhoon," the Ministry of Strategy and Finance said in a so-called Green Book, the monthly report assessing the nation's economic conditions. The consumer price inflation accelerated to 2 percent in September due to a hike in farm goods prices caused by typhoons during the summer season, but the ministry said the consumer prices stayed at a stable level until now, citing lower inflation expectations and core inflation. Output in the mining and manufacturing industries declined 0.7 percent in August from a month earlier due to slowing exports and labor strikes at the Hyundai-Kia Automotive Group, which dragged down auto production by 33 percent in August. Production in the service sector reduced 0.3 percent on-month in August, with retail sales retreating 3 percent over the cited period. Facility investment dropped 13.9 percent in August, with investment in the construction industry contracting 6.6 percent. Exports fell 1.8 percent in September from a year earlier, keeping its downward trend for three straight months. Trade surplus amounted to 3.15 billion U.S. dollars last month, but the surplus was mainly attributed to steeper fall in imports than exports. The ministry cautioned that there remained uncertainties at home and abroad, saying that the recovery in local consumption and investment was being delayed amid mounting concerns over the global economic slowdown.