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Manufacturing Sentiment Points To Further Growth Slowdown


South Korean manufacturing sentiment continued to deteriorate, slipping to 69 from 73 prior, according to this morning's BoK survey. This puts the gauge at its lowest levels since late 2020. Note the 2020 trough was just under50.0, so we are still some distance away from those levels. Still, the weaker reading is consistent with a further slowing in South Korean GDP growth, see the first chart below.

  • The headline index is consistent with y/y GDP growth easing below 2% as we progress into 2023. The Bloomberg consensus looks for GDP growth next year of 1.8%, so this survey is pointing in that direction.
  • Non-manufacturing sentiment also eased, back to 77 from 78 prior. Absolute levels are clearly higher relative to manufacturing, but we still eased back to early 2021 lows.

Fig 1: South Korean Manufacturing Sentiment Points To Further Slowing In GDP Growth

Source: MNI - Market News/Bloomberg

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