Mining & manufacturing, services, retail sales and facility investment declined while construction investment remained steady in September. Employment continued to increase in October and consumer prices rose at a faster pace.
Industrial production decreased 0.6 percent month-on-month in September as mining & manufacturing (down 1.8%, m-o-m and up 0.8%, y-o-y) and services (down 0.3%, m-o-m and up 5.6%, y-o-y) all went down.
In September, retail sales (down 1.8%, m-o-m and down 0.7%, y-o-y), facility investment (down 2.4%, m-o-m and up 12.5%, y-o-y) went down while construction investment remained steady (0.0%, m-o-m and up 3.9%, y-o-y).
Exports declined 5.7 percent year-on-year in October led by a slump in the export of major items such as semiconductor and steel products. Average daily exports decreased 7.9 percent year-on-year to US $2.44 billion in October 2022 from US $2.65 billion in October 2021.
The consumer sentiment index (CSI) declined 2.6 points month-on-month in October to 88.8. The business survey index (BSI) for all industries went down 2 points month-on-month to 76, and the BSI outlook for November 2022 declined 3 points to 76.
The cyclical indicator of the coincident composite index for September increased 0.1 points month-on-month and the cyclical indicator of the leading composite index fell 0.1 points.
The economy added 677,000 jobs year-on-year in October and the unemployment rate fell 0.4 percentage points year-on-year to 2.4 percent.
Consumer prices grew 5.7 percent year-on-year in October led by an increase in public utility charges. Core prices rose 4.8 percent.
In October, stock prices increased, the won strengthened, and Korean Treasury yields returned to a decline after an increase at the beginning of the month due to market expectations about major economies’ adjusting the pace of tightening.
Housing prices declined faster in October (down 0.49% → down 0.77%, m-o-m), and prices of Jeonse (lump-sum deposits with no monthly payments) also saw a faster decline (down 0.50% → down 0.88%, m-o-m).
Domestic demand has continued to improve gradually due to a recovery in employment and in-person service industries. However, amid continued high inflation and deteriorating economic sentiment due to external factors, there are signs of economic slowdown such as sluggish exports.
Internationally, with global inflationary pressure continuously rising, there are continued financial market volatility and economic downside risks due to major economies’ interest rate increases, the Russia-Ukraine war and China’s lockdown measures.
The government will strengthen its efforts to revitalize export and investment, manage risks at home and abroad and implement structural reforms, while also focusing on taming prices and stabilizing people’s livelihoods.
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