Facility Investment Turned upward

The business index is getting better with the industrial production in November, increased by 4.9 percent compared to that of last year, and facility investment is also turned up in 13 months.

There are many hopeful prospects that business is upturning to recovery as the rate of stock increase slowed down and the rate of facility operations in manufacturing industry is increasing. According to a survey, enterprises are planning to increase their facility investment for next year.

The National Statistical Office (NSO), in the report titled `the movement of industry in November` on 28th, announced that facility investment increased by 4.4 percent, upturning in 13 months since November last year. Indexes in every field of production, investment, shipping, and consumption showed a positive signs of the industrial productions, increased by 4.9 percent, shipping by 7.1 percent, wholesale and retail by 6.5 percent.

The stock increase rate was 2.3 percent, which was the lowest since 1999 for 2 years, and decreased by 1.8 percent from that of last month, marking 4 consecutive months decrease. The rate of facility operations in the manufacturing industry was 73.6 percent, rose by 2.1 percent from 71.5 percent in October, and the goods in stock is completely cleared and the production is increasing. Kim Min-Kyong, director general of the NSO`s economic statistics department said, "It is difficult to say whether economy definitely hit the bottom and is turning around, though the Cyclical Component of Coincident Composite Index rose for 3 months in a row. The rising mood should continue over next 6 months."

Chan-Sun Hong hcs@donga.com