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South Korea IP Beats On Chip Rebound

SOUTH KOREA

South Korea's September IP growth was stronger than expected at 1.8% m/m, versus -1.0% forecast (prior was revised down a touch to 5.2%). The y/y print rose to 3.0% (forecast at -0.8% and prior -0.7%). Y/Y momentum is now the highest since mid 2022 and suggests the recovery in the sector continues to take hold.

  • Looking at the detail, we had a 12.9% m/m rise in chip production. This follows a strong gain in August. Other data showed retail sales rising in the month (the first gain in 3 months), while facilities investment rose 8.7% after a 4% gain in August.
  • The cyclical leading index change rose 0.1 in Sep versus flat in August.
  • Note we get October trade figures tomorrow.

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