The National Statistical Office said Thursday business conditions in South Korea suffered a steady decline last month, taking a hit from Hyundai Motor's protracted walkouts.

The NSO said in its monthly report on industrial activities that six weeks of partial strikes at South Korea's largest automaker resulted in steep falls in the nation's industrial output and retail sales in July.

According to NSO data, the nation's industrial output inched up 0.7 percent last month, with increased sales by semiconductor, communications and motion-picture firms offsetting slumps at automakers and textile producers.

The government agency said, however, the 0.7 percent rise marked a sharp fall from an 8.4 percent output growth recorded for the previous month.

Offering a ray of hopes for a rebound, however, the NSO's leading business index, which predicts industrial activities in three to seven months, edged up 0.1 percentage point, marking the second consecutive monthly rise.