Korea: Business confidence moderates in August
July 29, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector produced by the Bank of Korea (BoK) inched down from 72 points in July to 71 points in August. This marked the second consecutive drop following three uninterrupted months of increase. The indicator remains well below the 100-point threshold that signals that businesses are more pessimistic than optimistic.
According to the Bank, economic sentiment among export-oriented firms as well as domestic-oriented firms remained unchanged in August. Manufacturing firms’ expectations regarding sales and profitability were up slightly in August compared to the previous month. The outlook on raw material purchase prices deteriorated, while the outlook for sales improved.
Meanwhile, the BSI’s current business conditions index remained unchanged at June’s 72 points in July.
Author: Luis Lopez Vivas, Economist