South Korea's industrial output slumps in January

South Korea's industrial output fell 3.7 percent in January -- the biggest monthly decline for six years -- due to slowing production in auto and machinery production, state data showed on Monday. The 3.7-percent fall in production of mining, manufacturing, gas and electricities followed a 3.0-percent increase in December. While the December monthly growth rate was the highest for five years, the January decline was the sharpest since December 2008 when output dropped 10.5 percent. Production of cars shrank 7.7 percent from a month earlier and machinery production also tumbled 6.8 percent. Retail sales fell 3.1 percent on-month. The country's 80-percent hike in cigarette prices that took effect in January played a role in dampening consumption, Yonhap news agency quoted a finance ministry official as saying. Investment also sagged 7.1 percent due to falling spending by carmakers and machinery firms.