Korea Business Confidence

Korea

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.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 4.2% in 2015, which is up 0.4 percentage points from last month’s forecast. For 2016, the panel expects growth in fixed investment to moderate to 4.0%.


Author:, Economist

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Korea Business Confidence August 2015

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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