Korea: Business confidence improves in October
October 1, 2014
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) increased from 74 points in September to 78 points in October. October’s result marked the first increase following four consecutive months of declines. Despite the improvement, the indicator is still below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank, the improvement in October’s business confidence was mainly driven by more optimistic domestic demand-oriented firms, while export-oriented firms’ expectations remained unchanged compared to the previous month. In addition, the BSI’s current business conditions index in the manufacturing sector increased from 74 points in August to 77 points in September.
Author: Cecilia Simkievich, Economist