South Korea’s export growth slows as external demand moderates

SEOUL : South Korea’s export growth slowed in September, with shipments to the United States barely increasing, in an outcome that may support market expectations for an easing of monetary policy as early as next week.
Exports increased 7.5 per cent in September from a year ago, decelerating from an 11.2 per cent rise in the previous month, the customs service agency reported on Tuesday.
The result, which beat the 6.5 per cent consensus estimate from analysts, was driven by slower shipments growth of 3.4 per cent to the United States in September after increasing 11 per cent in August.
Tuesday’s data comes amid growing market expectations that the Bank of Korea may cut policy interest rates from 3.50 per cent, the highest since late 2008, at an upcoming rate-setting meeting next Friday as growth concerns overshadow inflation worries.
Imports climbed 2.2 per cent, falling short of the 3.0 per cent rise forecast by analysts.
The preliminary trade surplus widened to $6.66 billion from $3.77 billion a month earlier.
In September, there were also fewer working days due to a longer break for the Chuseok thanksgiving holiday. (This story has been officially corrected after the trade ministry said the export growth to U.S. is 3.4 per cent, not 1 per cent, in paragraph 3)