Korea: Business confidence stagnates in pessimistic territory in November
October 30, 2015
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) held at October’s 70 points in November. The index is not much higher than the two-and-a-half year low 67 points registered in July, and is still well below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank, sentiment among domestic-demand oriented businesses moderated, although confidence among export-oriented firms improved. Expectations regarding sales were unchanged, while the outlook for profitability increased modestly. Businesses had weaker expectations for raw material and sales prices going forward.
Meanwhile, the BSI’s current business conditions index increased from 68 points in September to 71 points in October.
Author: Carl Kelly, Economist