Economic Bulletin | KDI 경제교육·정보센터

Economic Trends

Current Economic Trends

In June, industrial production, services production, retail sales, and facilities investment increased,while construction investment decreased. In July, job growth increased and consumer prices growthslightly speeded up. In June, total production fell (down 0.1% m-o-m and up 0.5% y-o-y), as construction production declined(down 0.3% m-o-m and down 4.6% y-o-y), while industrial production (up 0.5% m-o-m and up 3.8%y-o-y) and services production (up 0.2% m-o-m and up 0.5% y-o-y) increased. In June, retail sales (up 1.0% m-o-m and down 3.6% y-o-y) and facilities investment (up 4.3% m-o-mand down 2.7% y-o-y) increased, while construction investment (down 0.3% m-o-m and down 4.6%y-o-y) decreased. In July, exports grew by 13.9 percent from a year ago, driven by increased exports of the IT sectorincluding semiconductors. The daily average of exports increased by 7.1 percent from a year ago.In July, the Consumer Sentiment Index (CSI) rose by 2.7 points to 103.6 month-on-month. TheComposite Business Sentiment Index (CBSI) fell by 0.6 points to 95.1 in July, and the CBSI outlook forAugust increased by 0.3 points to 93.4 month-on-month. In June, the cyclical indicator of the coincident composite index decreased by 0.1 point from the previous month, and the cyclical indicator of the leading composite index increased by 0.2 points. In July, the economy added 172,000 jobs compared to the previous year and the unemployment rate fellby 0.2 percentage points from a year ago to 2.5 percent. In July, the Consumer Price Index (CPI) grew by 2.6 percent from the previous year. The index excludingfood and energy prices increased by 2.2 percent, and the index excluding agricultural and petroleumproducts increased by 2.1 percent. The CPI for basic necessities rose by 3.0 percent. In July, Korean equity prices fell, the Korean Won strengthened against the dollar, and the KoreanTreasury Bond yields fell driven by strong growing expectations of a potential interest rate cuts by the U.S.Fed. In July, housing prices increased (up 0.15% m-o-m), and Jeonse (lump-sum deposits with no monthlypayments) prices rose (up 0.16% m-o-m). With signs of inflation continuing to moderate, the Korean economys recovery gained furthermomentum as the domestic market showed signs of a rebound mainly driven by increased facilitiesinvestment in addition to a pickup in manufacturing and exports. The global economy is showing an overall recovery trend, mainly driven by the upturn in manufacturingactivity and trade. However, the pace of recovery differs across regions, amid continuing uncertaintiesassociated with geopolitical risks such as the Russia-Ukraine conflict and instability in the Middle East,and growing volatility of commodities prices, and economic slowdown in major countries. The government plans to promptly implement key policy measures outlined in the Economic PolicyDirections for the second half of 2024, such as focusing price stabilization, supporting small businessowners, and shoring up domestic demand. Moreover, the government also plans to push forward itspolicy agenda outlined in the Dynamic Economy Roadmap, which will focus on improving the publicsquality of life and enhancing the sustainability of the Korean economy. * For further details, please refer to the attached file.

Sep 2024