Korea: Business confidence rises further in April
March 29, 2017
The Bank of Korea’s forward-looking business confidence indicator (BSI) for the manufacturing sector inched up from 81 points in March to 82 points in April—the highest reading since May 2015. Despite the increase, the indicator remains firmly entrenched below the 100-point threshold, which signals pessimism among a majority of Korean businesses.
Looking at the details, business sentiment among domestic-oriented firms improved from the previous month, reflecting the recent political developments that have seen the country’s former prime minister finally impeached after months of uncertainty. Conversely, exporting businesses felt less upbeat than in the previous month as a result of a recent political rift with neighboring China that could prompt retaliatory measures on Korean exporting sectors, apart from those China is dependent on.
Author: David Ampudia, Economist