South Korea's industrial output bounced back in February from the previous month on increased demand for automobiles and semiconductors, according to government data Tuesday, in a positive sign for the economy gripped by uncertainties at home and abroad.

According to the report by Statistics Korea, production in the mining, manufacturing, gas and electricity industries moved up 2.6 percent last month from a month earlier. Compared with a year earlier, however, the figure was down 4.7 percent.

The monthly gain is a rebound from the sharp 3.7 percent on-month drop reported for January.

Production in the service sector also gained 1.6 percent from January and moved up 2.9 percent from a year earlier.

For all industries, output rose 2.5 percent from the previous month, the highest reading since March 2011, and gained 0.8 percent vis-a-vis a year earlier.

The statistical agency said a weak showing in January and a rise in demand for key goods caused output numbers to a rise in February from the month before.

"A solid rise in production for automobiles played a key part in better numbers, along with semiconductors, which offset poor showings in chemicals," said Jeon Baek-geun, director of the short-term industrial statistics division.

Car production accounts for roughly a third of South Korea's industrial output and is closely linked to other businesses, such as financing and parts production.

According to Jeon, the figures for March have yet to be announced but the first quarter of 2015 will likely be on a par with the reading from the fourth quarter of 2014. At that time, industrial output as a whole edged up slightly from the previous three-month period.

According to the data, retail sales and investment, key barometers of economic health, all rose in February. Retail sales advanced 2.8 percent on-month and 5.5 percent on-year, while business investments gained 3.6 percent from January and 3.6 percent from the year before.

Investment rose with companies pouring money into automobile production, manufacturing equipment and the purchase of passenger planes.

The statistical office said retail sales were buoyed by Lunar New Year's Day falling in February this year instead of in January, which was the case in 2014.

There is usually a rise in demand for food and non-durable goods ahead of the Lunar New Year holiday as people prepare special dishes and give gifts to relatives and friends.

The latest data showed construction work advancing 4.5 percent on-month and edging up 0.2 percent from the year before, although the scale of new orders secured by local builders fell 4 percent from February 2014.

There were more orders for houses and machinery installation, but less for the construction of roads, bridges and office buildings, the data showed.

The finance ministry said that the latest numbers showed that after a shaky start in January, industrial productivity was rising again.

It said that output for all industries stood at levels reached in December, with service sector productivity continuing to move up after numbers started improving in the third quarter of 2014.

"If the numbers for January and February are combined, output in the mining, manufacturing, gas and electricity industries, as well as business investment were not as robust as in the fourth quarter, but last year's figures included aggressive moves by many companies to ship as many products as possible so they can report improvements in their annual business reports," the ministry said.

For the future, it said with the positive impact of low interest rates and fuel prices starting to materialize, the economic recovery may gain more steam. (Yonhap)