South Korea's IP expected to have improved in April

South Korea is scheduled to release April industrial production (IP) data on 29 May. IP is expected to have grown by 0.6% y/y, from -0.1% in March following improved business sentiment in manufacturing. 

The Business Sentiment Index (BSI) rose to 82 from 80 in May and non-manufacturing BSI increased to 78 from 74. 

In a recent interview, Bank of Korea Governor Lee also noted that unofficial numbers indicated improving business sentiment. Employment in manufacturing likely remained stable, with jobs growth probably topping 3.9% y/y in April. 

However, slow exports remain a concern - April exports likely dropped 8% y/y and 1.4% m/m, which should limit IP growth. 

Production growth of 6.7% in semiconductors - a key weight in calculating IP - was likely offset cancelled out by a slowdown in automobile production.