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S Korea service sector snaps 4-month expansion
11/1/2005
SEOUL, Oct 31 (Reuters): South Korea's service sector output shrank for the first time in five months in September from August, data showed today, casting doubt over the strength of a recovery in domestic demand.
The 0.5 per cent drop in the service sector output index ended four successive gaining months and came a week before the central bank holds a policy meeting for the first time since it raised interest rates early this month.
Economists said the data suggested a recent recovery in domestic demand in Asia's fourth-largest economy might not be as robust as the government has been indicating and meant that interest rates were unlikely to be raised again this year.
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