Mining & manufacturing and facility investment rose in June while services, retail sales and construction investment declined. Employment continued to increase in July and consumer price inflation gathered speed.
Industrial production increased 0.6 percent month-on-month in June as mining & manufacturing (up 1.9%, m-o-m and up 1.4%, y-o-y) rose and services (down 0.3%, m-o-m and up 3.9%, y-o-y) fell.
Facility investment (up 4.1%, m-o-m and down 0.7%, y-o-y) increased while retail sales (down 0.9%, m-o-m and down 1.5%, y-o-y) and construction investment (down 2.0%, m-o-m and up 1.8%, y-o-y) declined in June.
Exports rose 9.2 percent year-on-year in July led by petroleum products and vessels. Average daily exports rose 13.9 percent year-on-year to US $2.58 billion in July 2022 from US $2.26 billion in July 2021.
The consumer sentiment index (CSI) declined 10.4 points month-on-month in July to 86.0. The business survey index (BSI) for the entire sector also went down 2 points to 80, and the BSI outlook for August 2022 decreased 3 points to 79.
The cyclical indicator of the coincident composite index for June rose 0.2 points and the cyclical indicator of the leading composite index showed a steady tone, rising 0.0 points.
The economy added 826,000 jobs year-on-year in July and the unemployment rate fell 0.3 percentage points to 2.9 percent.
Consumer prices grew 6.3 percent year-on-year in July due to higher increases in farm and fishery product prices. Core prices rose 4.5 percent.
Stock prices grew in July due to some easing of volatility in the global financial market while Korean Treasury yields fell and the won’s depreciation eased.
Housing prices decline is faster in July (down 0.01% → down 0.08%, m-o-m), and prices of Jeonse (lump-sum deposits with no monthly payments) also saw a faster decline (down 0.02% → down 0.08%, m-o-m).
The economy has continued to improve gradually due to recovery in employment and in-person service industries. However, amid continued high inflation and declines in some indicators of economic sentiment caused by external factors, there are concerns of economic slowdown such as a drag on export recovery in the future.
Internationally, although volatility in the global financial market is somewhat reduced, with global inflationary pressure continuously rising, global economic downside risks are higher due to major economies’ interest rate increases, the US and China’s economic slowdowns and the prolonged Russia-Ukraine war.
The government will make its utmost efforts to stabilize prices and people’s livelihoods especially ahead of Chuseok holiday, help recover from devastation caused by torrential rains, reinvigorate the private sector activities and manage risks by rapidly taking actions to address reformatory challenges for each sector.
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