Economic Bulletin October 2019
The Green Book: Current Economic Trends
Manufacturing fell in August, while services, consumption, construction investment and facilities investment improved.
Industrial production rose 0.5 percent from the previous month in August backed by services (up 1.1% → up 1.2%, m-o-m). Manufacturing (up 2.8% → down 1.4%, m-o-m) went down.
Retail sales (down 0.9% → up 3.9%, m-o-m) and construction investment (down 3.4% → up 0.3%, m-o-m) improved in August, facility investment remaining strong (up 2.1% → up 1.9%, m-o-m).
Exports declined 11.7 percent year-on-year in September, slowing down for a 10th consecutive month, as global economies remained weak and the semiconductor market has yet to rebound.
Consumer confidence rose 4.4 points to 96.9 in September, and the business sentiment index (BSI) for the manufacturing sector improved 3 points to 71, the outlook for October going up 1 point to 73.
The cyclical indicator of the coincident composite index increased 0.2 points in August to 99.5, and the cyclical indicator of the leading composite index fell 0.1 points to 98.3.
The economy added 348,000 jobs year-on-year in September as service jobs continued to grow. The unemployment rate fell 0.5 percentage points to 3.1 percent.
Consumer prices in September fell 0.4 percent from the previous year due to the low prices of fresh food and oil products, as well as a high base effect. Core inflation rose 0.6 percent.
KOSPI fell, the won weakened and Korea treasury yields declined in September.
Housing prices rose in September (down 0.05% → up 0.01%, m-o-m), and Jeonse (lump-sum deposits with no monthly payments) prices continued to fall (down 0.10% → down 0.03%, m-o-m).
Although the economy has been growing steadily, exports and investment remain weak amid slowing global demand, including the weak semiconductor market.
The government will work to boost investment, consumption and exports by implementing fiscal spending as planned, as well as other measures to support the economy. The government will strengthen its risk management and stay fully alert to potential risks.
Economic News Briefing
- Korea Grows 2.0% in Q3 2019
- FTA with Central America Goes into Effect
- Inbound FDI Up 4.8% in Q3 2019
- Committee on Supplies Manufacturing Sets Off
- Government Holds IR Session in New York
* For full text, please open the attached PDF file.