Korea: Business confidence plummets amid dim exports outlook
July 30, 2012
Business sentiment plummeted in August as weak global demand and the worsening crisis in Europe dampen export prospects. The forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector fell from 81 points in July to 70 points, the lowest level since May 2009. The weakening came on the back of deteriorating prospects for export growth and sales, as tensions in the Eurozone continue to weigh on demand for Korea's manufactured products. With the monthly drop, the index moved further below the 100-point threshold that separates optimistic from pessimistic territory. Along with the prospective business confidence indicator for August, the Bank of Korea (BoK) also publishes an index on current perception of business conditions, which refers to July. According to the BoK, current perceptions in the manufacturing sector followed suit and plunged from 82 points in June to 71 points in July.