2% slip looms over Korea's industrial production

Blame it on December's export contraction.

According to DBS, trade, inflation (January) and industrial production data (December) for Korea will be released this week. The firm projects industrial production to fall -2.0% MoM sa in Dec12, down from 2.3% in Nov12. This was in line with the export contraction in Dec12 and the lower-than-expected GDP growth in 4Q12.

The drags to December exports and production were temporary, due to the unfavorable working day effects and cold weather conditions.

Here's more from DBS:

January’s trade data will likely show a rebound in exports. It is true that exports registered a decline of -9% YoY in the first 20 days of Jan13. Note that, however, shipments in Jan12 were front loaded as a result of the early-arrival of the Lunar New Year last year.

The comparison base for the first 20 days of Jan13 is high. For the whole month of Jan13, we forecast export growth of 5.7% YoY, up from -5.7% in Dec12.

Inflation remains a non-issue, given the modest recovery in domestic demand and the appreciation of the KRW. Headline CPI is likely to remain benign at 1.7% YoY in Jan13, compared to 1.4% in Dec12.

In addition, trade surplus is expected to narrow temporarily in Jan13, due to seasonal factors.

Also Read

2024 Policy Address: Hong Kong cuts tax on liquor priced above $200 to 10% to boost trade

HK leads in business confidence index in GBA

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit