South Korea's industrial output experienced a downturn in May, continuing a trend of declining consumption and investment, according to data from Statistics Korea released on Friday.

The seasonally-adjusted production index for all industries, excluding agriculture, livestock, and fisheries, fell by 0.7% in May, following a 1.2% rise in April. Manufacturing output specifically decreased by 1.1%, reversing the previous month's 2.7% gain. While semiconductor production saw a 1.8% increase, sectors such as automobiles, machinery equipment, and primary metal products recorded single-digit declines.

The manufacturing industry's inventory-to-shipment ratio rose by 0.7 percentage points to 110.9% in May. The average capacity utilization rate for manufacturers dropped to 72.8%, down 0.7 percentage points from April.

In the construction sector, production plummeted by 4.6%, whereas the public administration sector saw a 2.2% increase in output. The service industry output declined by 0.5%, following a 0.7% rise in the previous month.

Private consumption also showed signs of weakness, with the seasonally-adjusted retail sales index decreasing by 0.2% in May, after a 0.8% drop in April. While sales of durable and non-durable goods increased, semi-durable goods like clothing experienced a significant 2.9% decline.

Facility investment fell sharply by 4.1% in May, marking the third consecutive month of decline. Completed construction also decreased by 4.6%, following a 4.2% increase in April.

Leading economic indicators, which predict future economic conditions, dropped by 0.1 points to 100.5 in May. Meanwhile, coincident economic indicators, which reflect current economic conditions, fell by 0.6 points to 98.8.