Korea: Business confidence moderates in July
July 18, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector elaborated by the Bank of Korea (BoK) inched down from 74 points in June to 72 points in July. The indicator dropped for the first time in July, following three consecutive months of increase. Furthermore, the indicator remains below the 100-point threshold that separates optimists from pessimists.
According to the Bank, economic sentiment among export-oriented firms decreased slightly in July, while sentiment among businesses oriented toward the domestic market remained stable over the previous month. Manufacturing firms’ expectations regarding sales and profitability were down slightly in July as the outlook on raw material purchase prices and on sales prices fell.
Meanwhile, the BSI’s current business conditions index remained unchanged in June at May’s 71 points.
Author: Ricardo Aceves, Senior Economist