Korea: Business confidence continues to increase in January
December 29, 2014
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) inched up from 75 points in December 2014 to 77 in January 2015. However, the index still remains below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank, the improvement in January’s business confidence reflected more optimism among export-oriented firms as well as improved expectations regarding sales and profitability. Conversely, domestic-oriented firms were more pessimistic than in the previous month, and expectations over sales prices also deteriorated.
The BSI’s current business conditions index decreased from 75 points in November to 73 points in December on the back of decreased optimism among domestic-oriented firms and worse expectations regarding sale prices.
Author: Cecilia Simkievich, Economist