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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
July industrial production was weaker than expected at -2.0% m/m (-1.0% forecast and -1.5% prior), which took the y/y pace to -8.0%, also below forecasts (-6.0% and -5.9% prior). Y/Y momentum has rolled back over but only modestly and we remain above the early 2023 trough point of -13.4%. The average operating ratio eased back to 70.2%, down from 71.8% in June.
- This data underscores a generally softer economic backdrop, albeit away from trough points seen late last year/earlier this year.
- Other data showed weaker retail sales (-3.2%), as well as softer facilities investment (-8.9% in July).
- The cyclical leading index did rise to 0.4 though (from 0.3), the firmest reading since mid 2021. The chart below overlays this index against y/y IP growth, suggesting an improved backdrop as we progress towards the end of 2023.
- Note tomorrow we get August trade figures.
Fig 1: South Korea Cyclical Leading Index Versus IP Y/Y
Source: MNI - Market News/Bloomberg
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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