Korea: Business confidence inches up in December
November 28, 2014
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) inched up from 74 points in November to 75 points in December. However, the index still remains below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank, the slight increase in December’s business confidence reflected more optimism among domestic-oriented firms as well as improved expectations regarding sale prices. Conversely, export-oriented firms were more pessimistic than in the previous month. The rest of the sub-components that comprise the index remained unchanged at November’s levels.
The BSI’s current business conditions index increased from 72 points in October to 75 points in November on the back of increased optimism among both export-oriented and domestic-oriented firms. Firms’ expectations for sales also improved over the previous month, whereas the rest of the categories remained unchanged.
Author: Cecilia Simkievich, Economist