No marked improvement in economic conditions: KDI

A South Korean state-run think tank said that key economic indicators moderated from the recent sluggishness, but as yet the overall economy is deemed to remain weak.

The following is a summary of the latest "Monthly Economic Trends" published by the Korea Development Institute (KDI) Thursday.

The cyclical component of coincident composite index only inched up, and exports remained subdued, meaning no marked improvement in economic conditions.

-The (average) capacity utilization rate stalled at a low level (76.2 percent), and the cyclical component of coincident composite index climbed only slightly from the previous month.

-In January, the average exports per day slipped, suggesting continuing overall sluggishness mainly in petroleum-related products.

-Futhermore, uncertainties about the real economy still run high, as consumption-related sentiment index stalled and the construction orders received decreased.

However, production and shipment turned upward, and some domestic demand indicators trended upward, implying a possibility of a modest improvement.

-Industrial production improved, both domestic and export shipment rebounded, and service production continued to increase at a modest rate.

-Private consumption expanded, mainly in durable goods, construction investment contracted less and facilities investment continued to grow at a moderate pace, following the trend seen a month ago.

Meanwhile, despite the raise in cigarette price, headline CPI (consumer price index) stood at a very low level below 1 percent, influenced by growing impacts of falling oil prices.

Last December, the KDI lowered its 2015 growth forecast for the South Korean economy to 3.5 percent from an earlier estimate of 3.8 percent.

Park Sae-jin swatchsjp@ajunews.com