South Korea’s service-sector output fell 1.3% month on month in July, reversing a 0.7% increase in June, preliminary data showed. The index covering all service industries, including finance, hospitality and retail, is a key gauge of domestic economic activity. The decline may indicate weaker consumer spending and business activity, although economists caution that one month does not establish a trend. The data could give the Bank of Korea more room to consider interest-rate adjustments if further evidence confirms a slowdown, while investors may favor globally exposed companies over businesses dependent on local spending. Manufacturing has benefited from the global semiconductor cycle, leaving analysts watching coming service-sector readings to determine whether July was a one-off correction or a broader weakening.