Korea: Business confidence keeps rising in April, reaches nine-month high
March 29, 2013
In April, the Bank of Korea's (BoK) forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector jumped to 80 points, up from the 76 points recorded in March. The figure marks the highest level seen in nine months. That said, the index remains well below the 100-point threshold that separates optimistic from pessimistic territory.
The improvement came on the back of better prospects for export-oriented growth. In addition, expected sales and expected sales prices also showed a significant increase over the previous month.
Along with the prospective business confidence indicator for April, the BoK also publishes an index on current perception of business conditions, which refers to March. According to the BoK, current perceptions in the manufacturing sector edged up from 71 points in February to 75 points in March, amid a better export and domestic demand condition.
FocusEconomics Consensus Forecast panellists expect fixed investment to expand 2.0% in 2013, which is down 0.2 percentage points from last month's forecast. In 2014, the panel expects fixed investment to accelerate to 3.9%.