Korea: Business confidence hits 10-month high in May
April 30, 2013
In May, the Bank of Korea's (BoK) forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector inched up to 81 points from the 80 points recorded in April. The figure marks the highest level seen in 10 months. That said, the index still remains well below the 100-point threshold that separates optimistic from pessimistic territory.
The improvement came on the back of better prospects for both export-oriented growth and domestic demand. Meanwhile, expected sales, profitability and raw material purchase prices also saw an increase over the previous month.
Along with the prospective business confidence indicator for May, the BoK also publishes an index on current perception of business conditions, which refers to April. According to the BoK, current perceptions in the manufacturing sector edged up from 75 points in March to 79 points in April, amid better export and domestic demand conditions.
FocusEconomics Consensus Forecast panellists expect fixed investment to expand 2.0% in 2013, which is down 0.2 percentage points from last month's forecast. In 2014, the panel expects fixed investment to accelerate to 3.9%.