The South Korean economy advanced 0.3 percent on quarter in the three months to June down from a 0.8 percent expansion in the previous period, advance estimates from the central bank showed. Figures came below market expectations as the outbreak of Middle East Respiratory Syndrome lead to a contraction in private consumption.
The spread of MERS hurt tourism activities with wholesale and retail trade and and restaurant and hotels activities declining. Yet, private consumption shrank 0.3 percent on quarter in the three months to June, following a 0.6 percent gain in the previous period, as expenditure on semi-durables goods and services decreased.
Construction investment grew 1.7 percent centrered around building construction, but much lower than a 7.4 percent rise in the first quarter. Investment in intellectual property products grew a meager 0.1 percent (2.3 percent in the first quarter) as software investment rose while R&D declined.
Exports expanded 0.1 percent, the same as in the first quarter while imports grew at a slower 0.5 percent (0.6 percent in the first quarter). In contrast, government spending rose at a faster 0.7 percent (0.2 percent in the first quarter).
Year-on-year, the economy expanded 2.2 percent, down from a 2.5 percent increase in the first three months of 2015.
7/23/2015 12:23:55 AM