The Korea Development Institute (KDI), a state-run research institute, assessed the economy by saying that "the slump in the construction industry continues, and manufacturing is also undergoing some adjustment." Until last month, it diagnosed conditions mainly by focusing on the construction slump and an improving trend in consumption, but this time it mentioned a manufacturing adjustment for the first time.
KDI on the 8th released its January economic trends containing this assessment. The KDI economic trends report is published monthly, and this report analyzes economic conditions in November–December.
KDI assessed that "production excluding semiconductors continues a somewhat weak increase, keeping the business sentiment index for manufacturing at a low level." On semiconductors, it said, "Export value is maintaining a high growth rate, but that is largely due to a sharp price surge, and the previously strong increase in production has adjusted."
On the construction industry, it maintained the view that the slump is continuing. Construction completed work, which reflects work already carried out, fell 17% year over year in November last year, extending a steep decline after a 24.8% drop the previous month. KDI assessed that "the construction industry continues a steep decline and is acting as a major factor constraining the economic recovery."
On the consumption institutional sector, it continued a positive assessment for a fifth straight month. KDI said, "Retail sales are maintaining a modest uptrend, and service output is showing signs of recovery, indicating that the improvement in consumption is continuing."
According to KDI, the consumer sentiment index remains relatively high, and the business sentiment index for non-manufacturing corporations is also improving. The labor market, too, was weak in construction and manufacturing, but the increase in the number of employed centered on services expanded slightly.