Korea: Business confidence improves in March
February 27, 2012
Business sentiment improved in March for a second consecutive month. The forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sectors rose to 84 points from 81 points in February and marked the highest level in five months. The improvement came on the back of better prospects for exports, which offset weaker expectations of domestic demand growth. That said, the index remains well below the 100 point-threshold that separates optimistic from pessimistic territory. Along with the prospective business confidence indicator for March, the Bank of Korea (BOK) also published an index on current perception of business conditions, which refers to February. According to the BOK, current perceptions in the manufacturing sector rose to 80 in February from 78 in January. Pessimistic business sentiment does not bode well for investment going forward.