Korea: Businesses remain pessimistic in March
January 29, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) in March rested at February’s 66 points, which marked the lowest reading in nearly seven years. As a result, the index remains well below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank, confidence among export-oriented firms continued to deteriorate, while sentiment among domestic-demand-oriented businesses continued to improve. Expectations regarding sales and probability were up slightly in March, compared to the previous month. The outlook on raw material purchase prices and on sales prices also improved, albeit to a lesser extent.
Meanwhile, the BSI’s current business conditions index ticked down from 67 points in February to 65 points in March.