Korea: Business confidence moderates in April, remains in pessimistic territory
March 30, 2015
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) moderated from 82 in March to 80 April. The decline only partly offsets the 9-point gain registered in March, although the index still remains below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank, the moderation in April’s business confidence reflected a weakening in sentiment among domestically oriented firms and lower expectations regarding sales and profitability. Sentiment among export oriented firms was unchanged. Businesses’ expectations in terms of profitability and sales prices improved slightly.
Meanwhile, the BSI’s current business conditions index inched up from 74 in February to 77 in March.
Author: Carl Kelly, Economist