In February, industrial and services production and facilities investment saw an increase while retail sales and construction investment dropped.

Despite a decline in construction production (-1.9% m-o-m and +0.5% y-o-y), the entire production climbed up (+1.3% m-o-m and +2.0% y-o-y) due to a surge in both industrial production (+3.1% m-o-m and +4.8% y-o-y) and services production (+0.7% m-o-m and +1.2% y-o-y).

Retail sales (-3.1% m-o-m and +0.9% y-o-y) and construction investment down (-1.9% m-o-m and +0.5% y-o-y) while facilities investment increased (+10.3% m-o-m and -0.3% y-o-y).

In March, exports moved up by 3.1% from a year ago, thanks to the expanded exports of semiconductors and ships. Average daily exports increased by 9.9% in March compared to the same month of last year.

The consumer sentiment index (CSI) in March fell by 1.2 points month-on-month to 100.7. While the business survey index (BSI) for the entire sector grew by 1 points month-on-month to 69, the BSI outlook for April dropped by 1points month-on-month to 71.

The cyclical indicator of the coincident composite index (+0.2 points) and the cyclical indicator of the leading composite index (+0.1 points) for February all went up.

In March, job growth improved while consumer price growth remained unchanged.

The economy added 173 thousand jobs year-on-year and the unemployment rate grew by 0.1%p from a year ago to 3.0%.

The consumer price index (CPI) growth remained unchanged at 3.1% m-o-m while the CPI excluding the food and energy sectors increased by 2.4% with the index excluding the agricultural and petroleum sectors up by 2.4%. The CPI for basic necessities moved up by 3.8%.

In March, Korean Treasury Bond yields declined owing to the ongoing expectation for the interest rate cut by the US Fed and stock prices rose on the back of a rebound in semiconductors. The Korean Won weakened due to the US’s strong economic index.

In February, housing prices continued to decline (-0.14 % m-o-m) and Jeonse[1] prices rose (+0.03% m-o-m).

Recently, inflation slowdown has been moderated in the Korean economy, while the recovery momentum continues mainly driven by manufacturing production and exports, and job growth remains strong. However, pace of recovery differs across economic sectors, with weakened commodity consumption and sluggish leading indicators in construction.

Internationally, alongside the anticipations for the global manufacturing industry’s growth including the IT sector, prospects for a soft landing of the global economy continue. At the same time, uncertainties linger due to geopolitical risks such as the Russia-Ukraine war and the escalation of conflicts in the Middle East resulting in the volatility in commodity prices.

Along with a concerted effort to achieve the firm anchoring of price stability, the government will focus on restoring a balanced recovery by expanding economic recovery momentum into vulnerable areas in people’s lives and domestic demand. In addition, strengthened endeavors will be made to meticulously manage potential risks and enhance dynamism in the Korean economy, with the pursuit of innovation, fairness, and social mobility.

Key Statistics

Employment

Consumer Price Index

                                                                                         (%)

Retail Sales

(Percentage change from the previous period, %)

1. Preliminary

Facility Investment Index

(Percentage change from the previous period, %)

1. Preliminary

Construction Completed

 (Percentage change from the previous period, %)

1. Preliminary

Exports and Imports

 (US$ billion, y-o-y, %)

Industrial Production (Mining, Manufacturing, Electricity and Gas Production)

                (Percentage change from the previous period, %)

  1. Preliminary

  2. Mining, Manufacturing, Electricity and Gas Production

  3. End-point (month, quarter, and year)

  4. Average operation ratio for the month (or quarter)

Service Output

           (Percentage change from the previous period, %)

    1. Preliminary

Composite Indices of Coincident and Leading Indicators

                                                                                           (Points)

1. Preliminary

Please refer to the attached files.