January Industrial Production Up 0.5%... Increase After Four Months

Statistics Korea, January 2023 Industrial Activity Trends
Retail Sales Down 2.1%, Declining for Three Consecutive Months

In January of this year, total industrial production increased by 0.5% compared to the previous month, showing an upward trend for the first time in four months. On the other hand, retail sales decreased by 2.1%, continuing a decline for the third consecutive month.

On the 2nd, Statistics Korea released the "January 2023 Industrial Activity Trends" report containing these details.

Total industrial production rose by 0.5% month-on-month as production increased in manufacturing, construction, and services, despite a decline in public administration. This marks a turnaround to growth after four months. However, compared to the same month last year, production decreased by 0.8% due to declines in manufacturing and public administration.

Retail sales fell by 2.1% month-on-month as sales of non-durable goods such as food and beverages (-1.9%), semi-durable goods such as clothing (-5.0%), and durable goods such as passenger cars (-0.1%) all declined. Compared to the same month last year, sales of semi-durable goods like clothing (-5.8%) and durable goods like home appliances (-3.5%) decreased, while sales of non-durable goods such as food and beverages (3.9%) increased, resulting in an overall 0.7% rise.

Facility investment decreased by 1.4% month-on-month as investment increased in transportation equipment such as automobiles (15.9%) but declined in machinery such as special industrial machinery (-6.9%).

The coincident composite index, which indicates the current state of the economy, fell by 0.4 points compared to the previous month. The leading composite index, which shows economic outlook, also dropped by 0.3 points month-on-month.