Korea: Business confidence rises for third consecutive month in November
October 30, 2013
The Bank of Korea's (BoK) forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector rose from 82 points in October to 83 points in November. The indicator is now at the highest level since June 2012, although it remains below the 100-point threshold that separates pessimistic from optimistic territory.
November's increase mainly reflects improving business prospects for locally-oriented firms, while expectations for export-oriented businesses remained unchanged over the previous month. In addition, firms reported a more optimistic assessment regarding lower raw material prices and higher sales prices, resulting in higher earnings.
The BSI's current business situation index showed that business sentiment in the manufacturing sector rose from 75 points in September to 81 points in October.
FocusEconomics Consensus Forecast panelists expect fixed investment to expand 2.0% in 2013, which is down 0.2 percentage points from last month's forecast. In 2014, the panel expects fixed investment to accelerate to 3.9%, which is unchanged from last month's estimate.
Author: Ricardo Aceves, Senior Economist