Korea: Business confidence ticks up in May but remains in pessimistic territory
April 29, 2015
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) increased from 80 in April to 82 in May. However, the index still remains below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank, the modest improvement in business confidence in May reflected stronger sentiment among domestically oriented firms and higher expectations regarding sales and profitability. In contrast, sentiment among export-oriented firms moderated. Businesses’ expectations in terms of raw material purchase prices and sales prices were unchanged in May compared to the previous month.
Meanwhile, the BSI’s current business conditions index inched up from 77 in March to 80 in April.
Author: Carl Kelly, Economist