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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH KOREA
Headline GDP growth was slightly firmer than expected for South Korea in Q2. The q/q outcome came in at +0.6%, against a +0.5% forecast (+0.3% prior), which saw a slightly firmer than expected y/y pace at 0.9% (0.8% forecast and 0.9% prior).
- Some resilience in y/y growth momentum is consistent with business and consumer sentiment surveys stabilizing since the start of the year. The chart below overlays manufacturing sentiment against y/y GDP growth.
- Still the detail wasn't all that positive, with q/q contractions for major expenditure components:
- Private consumption -0.1%, construction investment -0.3%, facilities investment -0.2% and exports -1.8%, although imports recorded a larger q/q fall of -4.2%. Government spending was also softer at -1.9%.
- By industry, the trends were more mixed, manufacturing up 2.8% q/q, and services +0.2% (after being flat in Q1). This offset construction and utilities weakness.
- Overall, while the headline result will be welcome, the detail showed the domestic economy is not on strong footing in terms of the expenditure components. Export growth also looks uncertain, with the first 20-days of July data showing renewed headwinds.
Fig 1: South Korean Y/Y GDP & Manufacturing Sentiment
Source: MNI - Market News/Bloomberg/BOK
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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