Dow Today – POLL-S.Korea exports growth seen softening in Jan; CPI seen up 3.3%
reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=KREXP%3DECI poll data
Jan exports +15.5% y/y, imports +32.8% y/y -poll
Jan CPI +3.3% y/y -poll
Dec industrial output +1.0% s/adj m/m -poll
Trade data due on Jan. 1, 9 a.m. (0000 GMT)
SEOUL, Jan 27 (Reuters) – South Korean exports likely grew for a 15th straight month in January, but at a slower pace than in the prior month, a Reuters poll showed on Thursday, as global supply hiccups continued, while cost pressures stayed elevated.
Exports in terms of value were seen growing 15.5% in January from a year earlier, according to the median forecast of 10 economists, slowing down from 18.3% expansion in December.
“Demand for chips, cars and petrochemical products remain strong,” said Chun Kyu-yeon, an analyst at Hana Financial Investment said.
“But supply chain hiccups and resurgence of COVID-19 cases globally restricted shipments of some items, and base effects from lows of last year are also fading.”
Economies around the world suffered from the global chip supply shortage and other production bottlenecks as the highly transmissible Omicron variant of COVID-19 became the dominant strain of infection in many parts of the world.
South Korea reported a record high 14,518 new daily COVID-19 cases for Wednesday, clouding the outlook for global trade after exports out of Asia’s fourth largest economy expanded at their fastest pace in 11 years in 2021.
Preliminary data from last week showed exports for the first 20 days of the month soared 22.0% from a year earlier, with deliveries to China and the United States jumping 18.8% and 28.0%, respectively.
Economists saw January imports growing 32.8%, also slowing slightly from a 37.1% expansion in December.
The full-month trade data will be published on Tuesday at 9 a.m. (0000 GMT).
In the same Reuters poll, economists projected the consumer price index (CPI) would rise 3.3% this month from a year earlier, slowing from a decade-high 3.8% rise in November.
Some 15 economists also estimated industrial output in December rose a median 1.0% from November.
(Reporting by Cynthia Kim, Tushar Goenka; Editing by Raju Gopalakrishnan)
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