Korea: Business confidence slumps in August
July 28, 2017
The Bank of Korea’s forward-looking business confidence indicator (BSI) for the manufacturing sector eased from 80 points in July to 78 points in August, a back-to-back decline and the lowest reading since February. As a result, the indicator is now further below the 100-point threshold and signals pessimism among the majority of Korean businesses.
Business sentiment among both export- and domestic-oriented firms deteriorated slightly in August. In contrast all of the other components in the index improved mildly or remained constant from the previous month. Perspectives on profitability, raw material prices, and sales prices made small gains. The report rides on the back of disappointing industrial production results in June as well as continued political tension with China.
Author: Lindsey Ice, Economist