Korea: Business confidence rises to highest level in a year
May 30, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector elaborated by the Bank of Korea (BoK) inched up from 73 points in May to 74 points in June. The indicator increased for a third consecutive month and, due to the improvement, business sentiment is now at the highest level since June 2015. Nonetheless, the indicator remains below the 100-point threshold that separates optimists from pessimists.
According to the Bank, economic sentiment among export-oriented firms improved in June, while sentiment among businesses oriented toward the domestic market weakened over the previous month. Manufacturing firms’ expectations regarding sales and profitability were down slightly in June as the outlook on raw material purchase prices and on sales prices fell.
Meanwhile, the BSI’s current business conditions index remained unchanged in May at April’s 71 points.
Author: Ricardo Aceves, Senior Economist