Korea: Business confidence tumbles in July
June 30, 2015
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) plunged from 76 in June to 67 in July, which marked the lowest level in more than two and a half years. Moreover, the index is now even further below the 100-threshold that separates pessimistic from optimistic territory.
According to the Bank, the steep deterioration in business confidence in July reflected much weaker sentiment among both domestically and export-oriented firms. Expectations regarding sales also suffered a large drop. Businesses’ outlook in terms of profitability and sales were also down, although to a lesser degree.
Meanwhile, the BSI’s current business conditions index slumped from 73 in May to 66 in June.
Author: Carl Kelly, Economist