KDI "Weak Economic Recovery Due to External Constraints... Services Rebound from Slump"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The Korea Development Institute (KDI) evaluated on the 7th that "the economic recovery is weak due to constraints in external conditions."

KDI made this assessment in the 'Economic Trends November Issue' released that day.

In September, industrial production decreased by 1.8% compared to the same period last year. Due to semiconductor supply disruptions, the decline in automobiles was 24.2%.

The average operating rate of manufacturing in September also slightly fell to 73.5% from 74.1% in the previous month. Shipments sharply dropped (6.4% → -5.6%) while inventory ratio rose (112.1% → 113.2%), indicating overall sluggishness in manufacturing.

However, service industry production increased by 3.3% compared to the same period last year. The coincident index cyclical component in September remained the same as the previous month (101.2), and the leading index cyclical component slightly declined from 102.4 to 102.1.

KDI diagnosed, "With some easing of quarantine measures in September, production and employment in face-to-face sectors such as accommodation and food services improved, and consumption continued a moderate upward trend due to factors including the distribution of the National Support Fund."

Retail sales in September increased by 3.8% compared to the same period last year, mainly in semi-durable and non-durable goods. The consumer sentiment index in October rose slightly to 106.8 from 103.8 in the previous month.

The number of employed persons in September increased by 671,000 compared to the same month a year ago despite base effects and sluggishness in face-to-face sectors. The seasonally adjusted employment rate rose by 0.1 percentage points from the previous month to 60.8%.

This content was produced with the assistance of AI translation services.