Korea: Business confidence dips in October
September 27, 2012
Business sentiment fell in October as the worsening crisis in Europe dampens export prospects. The forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector fell from 75 points in September to 72 points in October, partially erasing the previous month's gain. The deterioration came on the back of more pessimistic prospects for export growth and sales for Korea's manufactured products. With the monthly drop, the index moved further below the 100-point threshold that separates optimistic from pessimistic territory. Along with the prospective business confidence indicator for October, the Bank of Korea (BoK) also publishes an index on current perception of business conditions, which refers to September. According to the BoK, current perceptions in the manufacturing sector dropped from 72 points in August to 69 points in September.