January Industrial Production and Consumption Both Decline... First Time Since March 2020 (Update)

[Asia Economy Sejong=Reporter Kim Hyewon] In January, both total industrial production and consumption decreased simultaneously. This is the first time since March 2020 that total industrial production and retail sales have declined at the same time. In particular, consumption fell by nearly 2% compared to the previous month, marking the largest drop since July 2020.

According to the "January Industrial Activity Trends" released by Statistics Korea on the 2nd, the total industrial production index (seasonally adjusted, excluding agriculture, forestry, and fisheries) was 115.8 (2015=100), down 0.3% from the previous month.

Total industrial production returned to a downward trend after rebounding in November last year, marking a decline after three months. Production increased in manufacturing (0.2%) and construction (0.5%), but decreased in public administration (-3.2%) and services (-0.3%).

The retail sales index (seasonally adjusted), which reflects consumption trends, was 120.8 (2015=100), down 1.9% from the previous month. This is the largest decline since July last year (-5.6%).

The leading index cyclical component, which predicts future economic conditions, fell by 0.1 points to 100.1, continuing a seven-month consecutive decline since July last year. However, the coincident index cyclical component, which indicates the current economic situation, rose by 0.6 points to 102.4.

Oh Woonseon, Director of Economic Trend Statistics at Statistics Korea, said, "With production in the service sector and retail sales declining, the economic recovery trend showed some hesitation," adding, "From an experiential perspective, this can be interpreted as the economy approaching a turning point, but exports remain steady and there are positive factors in the semiconductor industry outlook."

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