Korea: Business confidence rises in October
September 30, 2013
The Bank of Korea's (BoK) forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector climbed from to 77 points in September to 82 points in October. The indicator is now at the highest point since June, although it remains below 100-point threshold that separates pessimistic and optimistic territory.
October's increase mainly reflects improving business prospects for both local and export-oriented firms. In addition, businesses reported a more optimistic assessment regarding future sales and the resulting higher earnings. Meanwhile, expectations for higher sales prices and raw material purchase prices remained unchanged over the previous month.
The BSI's current business situation index showed that business sentiment in the manufacturing sector rose from 73 points in August to 75 points in September.
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