The second consecutive on-month rise in South Korea's factory output does not necessarily mean the economy is picking up, says Tongyang Securities economist Lee Chul-hee. "The economy is still going through a slowdown," Lee says; "an additional (BOK) policy rate cut is likely in January or February of next year for stimulus." He says the country's subdued inflation comfortably allows for a further rate cut. Industrial production grows 0.6% on-month and falls 0.8% on-year in October vs a revised 0.7% on-month rise and 0.7% on-year gain in September, according to Statistics Korea. The October monthly output gain beats the median forecast of nine economists surveyed by Dow Jones Newswires predicting a 0.5% rise in October. The leading indicator falls to 99.1 in October from 99.4 in September.
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