Korea Business Confidence August 2016


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.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 2.6% in 2016, which is down 0.2 percentage points from last month’s forecast. For 2017, the panel expects growth in fixed investment to increase 2.8%.

Author:, Economist

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Korea Business Confidence Chart

Korea Business Confidence August 2016

Note: Business Survey Index (BSI). An index value above 100 indicates an optimistic outlook while a value below 100 indicates a pessimistic outlook.
Source: Bank of Korea

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