Korea: Business confidence moderates in October, remains stuck in pessimistic territory
October 1, 2015
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) inched down from 71 points in September to 70 points in October. The index is not much higher than the two-and-a-half year low registered in July, and is still well below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank, the moderation in business confidence in October reflected slightly weaker sentiment among domestic demand-oriented businesses. Confidence among export-oriented firms was unchanged. Expectations regarding profitability were down, while the outlook for sales was stable. Businesses expressed higher expectations for raw material and sales prices going forward.
Meanwhile, the BSI’s current business conditions index in September was unchanged at August’s 68 points.
Author: Carl Kelly, Economist