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IP Weaker Than Expected, Capacity Utilization Rates Dip Back To 2020 Levels


South Korean industrial production growth missed estimates for October, coming in at -3.5% m/m, versus a -1.0% forecast, while September figures were revised down a touch. This puts the y/y pace at -1.1%, the first negative y/y print since September last year.

  • Manufacturing capacity utilization fell back to 72.40%, a steep fall from last month's 75.1%. This is the lowest utilization levels since Q3 2020, see the chart below. Weaker external demand, as signified by falling export growth, is a likely part driver of this trend.
  • In terms of other data, retail sales fell by -0.2% m/m, while the cyclical leading index was unchanged at -0.1.

Fig 1: South Korea IP Growth & Capacity Utilization Rates

Source: MNI - Market News/Bloomberg

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