Korea: Business confidence inches up in September, but remains entrenched in pessimistic territory
August 31, 2015
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) inched up from 70 in August to 71 in September. The index has recovered slightly since hitting a two-and-a-half year low in July, but is still well below the 100-threshold that separates pessimistic from optimistic territory.
According to the Bank, the modest increase in business confidence in August reflected stronger sentiment among domestic demand-oriented businesses. Confidence among export-oriented firms fell slightly. Expectations regarding sales and profitability strengthened, while the outlook for raw material prices was down a notch.
Meanwhile, the BSI’s current business conditions index moderated from 70 in July to 68 in August.
Author: Carl Kelly, Economist