Korea: Business confidence drops on slowing demand concerns
May 29, 2012
Business sentiment deteriorated in June after rising for four consecutive months. The forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector fell to 86 points from 90 points in May. The weakening came on the back of deteriorating prospects for export growth and financial situation, as tensions in the Eurozone and global financial markets weigh on global demand. 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 June, the Bank of Korea (BoK) also publishes an index on current perception of business conditions, which refers to May. According to the BoK, current perceptions in the manufacturing sector remained unchanged from April's 84 points.