Korea: Business confidence rises further in October
September 30, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector produced by the Bank of Korea (BoK) rose from 74 points in September to 75 points in October. This marked a 16-month high, yet the indicator remains firmly entrenched below the 100-point threshold that signals that businesses are more pessimistic than optimistic.
October’s improvement reflected mainly higher confidence among domestic market-oriented manufacturing companies. Conversely, sentiment among export-oriented businesses waned. The survey also showed that firms were less optimistic regarding higher sales, while companies’ profitability expectations remained unchanged.
Author: Ricardo Aceves, Senior Economist