Korea Business Confidence

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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.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 3.8% in 2014, which is down 0.2 percentage points from last month’s forecast. For 2015, the panel expects growth in fixed investment to moderate to 3.6%, which is unchanged from last month’s forecast.


Author:, Economist

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Korea Business Confidence November 2014

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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