Korea: Business confidence deteriorates in November
November 7, 2014
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) decreased from 78 points in October to 74 points in November. The index has remained below the 100-point threshold that separates pessimistic from optimistic territory since May 2011.
According to the Bank, the deterioration in November’s business confidence was broad-based. Both export-oriented and domestic-oriented firms were more pessimistic compared to the previous month. Expectations regarding sale prices also worsened substantially in November.
The BSI’s current business conditions index also declined, dropping from 74 points in September to 72 points in October mainly on the back of less optimism among both export-oriented and domestic-oriented firms. Expectations for sales improved over the previous month, although not enough to offset the deterioration in the rest of the sub-components.
Author: Cecilia Simkievich, Economist