Subject	All industries	Mining & manufacturing	Service	Retail sales	Equipment investment	Construction completed
Monthly Change (%)	∆0.4	▲1.3	∆0.1	∆0.8	∆5.6	∆12.4

In January, production of mining and manufacturing industries declined in semiconductors (△8.6 percent) due to a declining trend at the beginning of the quarter, but the decline was compensated by an increase in production of other manufacturing industries, including telecommunications. Despite a decline in wholesale and retail (△1 percent), service industry production grew (1.1 percent in Dec. 2023 and 0.1 percent in Jan. 2024), backed by increases in telecommunications (+4.9 percent) and real estate (+2.6 percent). Retail sales increased by 0.2 percentage points from December 2023, as durable goods (-1 percent) and semi-durable goods (-1.4 percent) declined, but sales of nondurable goods (2.3 percent) expanded. Capital investment contracted from the previous month, led by a decline in machinery (-3.2 percent) and a sharp drop in transportation equipment (-12.4 percent). Civil engineering (12.8 percent) increased on the back of expanded plant construction, while construction improved (12.3 percent) both in residential and non-residential sectors. The cyclical change in the coincident index turned positive for the first time in three months, driven by increases in retail sales and completed construction projects. The cyclical change in the leading index stayed flat despite improvements in inventories and stock prices, due to falling construction orders. Recently, the manufacturing sector and exports have led the recovery of the Korean economy amidst uncertainties in domestic consumption. At the same time, the economy carries upside and downside risks going forward. On the production side, the rebound in key industries such as semiconductors, continued improvement in exports, and the spreading prospect of a soft landing in the global economy are positive, but geopolitical unrest and supply chain risks, as well as monetary policies of major countries in line with global inflation, are burdening the economy. As for consumption and investment, improving consumer sentiment, an increase in international visitors, and plans to expand capital investment in key industries (ten major manufacturing industries, +10 percent YoY) are positive factors, while household debt and real estate PF risks, slow construction orders, and delays in construction of major business sites are downside factors.

※ Source: Ministry of Economy and Finance(moef.go.kr)