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.
Author: Carl Kelly, Economist