Korea: Business confidence falls further into pessimistic territory
August 29, 2014
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea inched down from 75 points in August to 74 points in September. September’s result marked the fourth consecutive fall in confidence and the lowest level since August 2013. The indicator is now further below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank of Korea, export-oriented firms’ expectations worsened compared to the previous month, while domestic demand-oriented firms’ expectations did not change. In addition, according to the BSI’s current business conditions index, business confidence in the manufacturing sector fell from 74 points in July to 72 points in August.