Korea: Business confidence remains in pessimistic territory despite modest recovery in August
July 31, 2015
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) increased from 67 in July to 70 August. July’s result had marked the lowest level in more than two and a half years. Despite August’s modest recovery, the index is still below the 100-threshold that separates pessimistic from optimistic territory.
According to the Bank, the increase in business confidence in August reflected stronger sentiment among export-oriented firms. Sentiment among domestic facing businesses was unchanged. Expectations regarding profitability and sales prices were up moderately, while businesses’ outlook in terms of sales weakened slightly.
Meanwhile, the BSI’s current business conditions index improved from 66 in June to 70 in July.
Author: Carl Kelly, Economist