Korea: Business confidence drops to lowest level in over three years
November 29, 2012
Business sentiment fell in December, as weak economic growth dampens expectations. The Bank of Korea's (BoK) forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector fell from 70 points in November to 67 points, the lowest level since April 2009. The deterioration came on the back of more pessimistic prospects for domestic demand 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 December, the BoK also publishes an index on current perception of business conditions, which refers to November. According to the BoK, current perceptions in the manufacturing sector inched down from 68 points in October to 67 points in November.