Korea: Business confidence edges down in January
December 30, 2016
After two consecutive months of stable mood, pessimism among Korean consumers grew in January. The Bank of Korea’s forward-looking business confidence indicator (BSI) for the manufacturing sector inched down from 72 points in December to 71 points. The indicator remains firmly entrenched below the 100-point threshold, signaling that businesses are more pessimistic than optimistic.
Looking at the details, the sub-indicator of business sentiment among domestic-oriented firms declined considerably from the previous month, with respondents attributing their negative sentiment primarily to their serious concerns regarding the current social turmoil and political conflicts. Conversely, exporting businesses indicated more optimism, given the improvement seen recently in international trade and also due to higher Chinese demand for semiconductors.
Author: Ricardo Aceves, Senior Economist