Korea Business Confidence March 2016

Korea

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.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 3.3% in 2016, which is unchanged from last month’s forecast. For 2017, the panel expects growth in fixed investment to increase 3.0%.


Author: Teresa Kersting, Economist

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Korea Business Confidence March 2016

Note: Business Survey Index (BSI). An index value above 100 indicates an optimistic outlook while a value below 100 indicates a pessimistic outlook.
Source: Bank of Korea


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