Seoul: South Korea's industrial output posted its fastest growth in five years and eight months in February, driven by gains in manufacturing and services, government data showed Tuesday. Industrial production rose 2.5 percent from a month earlier last month, according to the data from the Ministry of Data and Statistics. It marked the fastest increase since June 2020, when output jumped 2.9 percent on-month.

According to Yonhap News Agency, the ministry noted that the impact of the Middle East crisis that erupted in late February had not yet taken a toll on the economy. "The effects of the Middle East crisis that broke out on Feb. 28 may appear as some signals in February's data, but the full impact is expected to be seen starting in March," Lee Doo-won, a ministry official, said.

Output in the mining and manufacturing sector, a key pillar of the economy, advanced 5.4 percent on-month in February, the ministry said. This also marked the steepest gain since June 2020, when the figure rose 6.6 percent. Notably, semiconductor production surged 28.2 percent from a month earlier, as global demand continued to grow amid the artificial intelligence (AI) boom.

Retail sales, a key indicator of private spending, remained unchanged from the previous month. Sales of semidurable goods, such as clothing, fell 5.4 percent, while durable goods, including home appliances, declined 1.5 percent. In contrast, sales of nondurable goods, such as food and beverages, rose 2.6 percent.

Facility investment jumped 13.5 percent on-month, led by increased investment in machinery and transportation equipment.