Korea: Business confidence hits one-year high in June
May 30, 2013
In June, the Bank of Korea's (BoK) forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector inched up to 82 points from the 81 points recorded in May. Although the figure marks the highest level seen in 12 months, the index remains well below the 100-point threshold that separates optimistic from pessimistic territory.
The improvement came on the back of better prospects for export-oriented growth despite the recent appreciation of the won against the Japanese yen. On the other hand, expectations on domestic demand-oriented growth fell, amid a decline in prospects for sales, profitability and raw material prices.
Along with the prospective business confidence indicator for June, the 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 edged up from 79 points in April to 80 points in May, amid an improved perception of export 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%.