All industries	Mining & manufacturing	Service	Retail sales	Equipment investment	Construction completed
‘Monthly Change(%)	0.5	2.9	0.1	∆2.1	∆1.4	1.8

In January 2023, production of mining and manufacturing industries rose by 2.9 percent to record the highest growth rate in 13 months, led by 9.6 percent and 6.7 percent increases in auto and primary metals, respectively, against a 5.7 percent decline in semiconductors and a 111 percent surge in communications and broadcasting equipment. Production of the service industry gained slightly, as wholesale and retail increased by 3.7 percent and information and communication rose by 3.1 percent, whereas transportation and warehousing increased by 2.0 percent and financial insurances fell by 3.1 percent. Retail sales fell as consumption of durable, nondurable, and semi-durable goods declined altogether. Whereas the investment in transportation equipment saw a sharp increase of 15.9 percent, equipment investment fell as semiconductor-related machinery investment declined by 6.9 percent due to the downturn in the semiconductor industry. Construction investment increased while civil engineering projects fell by 10.3 percent but construction investment increased by 5.9 percent as the truckers’ union stopped their refusal to transport goods and as the construction of a semiconductor plant made progress. The cyclical change in the coincident index dropped by 0.4 percentage points due to declining retail sales while the cyclical change in the leading index fell by 0.3 percentage points due to the weakening of economic sentiment. As the real economy continues to worsen since the second half of 2022, upside and downside risks coexist in the economic cycle going forward. On the production side, there are positive factors including China’s reopening and the easing of hard landing concerns of the world’s major economies including the United States and the eurozone. However, there are burdens such as an adjustment in inventories caused by the piling semiconductor inventories in Korea and a continued decline in semiconductor exports. The easing of quarantine restrictions for arrivals from China, the partial lifting of mandatory wearing of masks indoors, and accumulated household savings are positive signs for consumption and investment. At the same time, burdens exist such as a weakening of business sentiment and continued economic uncertainties such as monetary policies of major countries.