Korea: Business confidence improves for second consecutive month in May
April 29, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector elaborated by the Bank of Korea (BoK) rose from 70 points in April to 73 points in May. Due to the improvement, the indicator is now at the highest level since June 2015. Nonetheless, the indicator remains below the 100-point threshold that separates optimists from pessimists.
According to the Bank, economic sentiment among both export-oriented and domestic-demand oriented firms improved in May. In addition, expectations regarding sales and probability were up substantially in May and the outlook on raw material purchase prices and on sales prices also improved notably.
Meanwhile, the BSI’s current business conditions index ticked up from 66 points in April to 69 points in May.
Author: Ricardo Aceves, Senior Economist