Korea: Business confidence improves markedly in September
August 29, 2017
The Bank of Korea’s forward-looking business confidence indicator (BSI) for the manufacturing sector rose to 83 points in September from 78 points in August, marking a three-month high and reversing losses made in July and August. As a result, the indicator now sits closer to the 100-point threshold and still signals that the majority of Korean businesses remain pessimistic.
The index gauging manufacturing sentiment rose markedly in September as a result of stronger domestic demand, while that of exporting business was stable at August’s reading. Businesses’ perceptions on sales, profitability, raw material costs and output prices all recorded minor increases. Conditions among non-manufacturing businesses also picked up in September, although the improvement was much weaker than that observed among Korean manufacturers, the mainstay of the country’s economy.
Author: David Ampudia, Economist