Korea Business Confidence

Korea

Korea: Business confidence deteriorates in June

May 29, 2015

The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) decreased from 82 in May to 77 in June, which marked the lowest level in four months. Moreover, the index remains well below the 100-threshold that separates pessimistic from optimistic territory.

According to the Bank, the deterioration in business confidence in June reflected weaker sentiment among domestically oriented firms and much lower expectations regarding sales. Business confidence among export-oriented firms fell modestly. Businesses’ outlook regarding profitability and sales prices was also down in June compared to the previous month, while expectations for raw material purchase prices increased slightly.

Meanwhile, the BSI’s current business conditions index slumped from 80 in April to 75 in May.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 4.2% in 2015, which is up 0.4 percentage points from last month’s forecast. For 2016, the panel expects growth in fixed investment to moderate to 4.0%.


Author:, Economist

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Korea Business Confidence Chart


Korea Business Confidence June 2015

Note: Business Survey Index (BSI). An index value above 100 indicates an optimistic outlook while a value below 100 indicates a pessimistic outlook.
Source: Bank of Korea


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