Korea Business Confidence August 2018


Korea: Forward-looking business confidence decreases for August

July 31, 2018

The Bank of Korea’s forward-looking business confidence indicator (BSI) for the manufacturing sector has registered pessimism among businesses for every month since June 2011. For August 2018, the indicator decreased substantially to 73 points from July’s 80 points. Therefore, the BSI came in below both the 100-point threshold for August, signaling another month of pessimism, and the long-run average reading of 86 points.

A breakdown of the BSI components showed that, for August, businesses in the manufacturing sector were notably more pessimistic about sales prospects. Manufacturers were also more concerned about profitability and sales prices than they were for July. However, businesses were more confident about raw material purchase prices for August.

Confidence among non-manufacturing businesses—the mainstay of the Korean economy—fell to 74 points for August from 80 points for July.

Korea Fixed Investment Forecast

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 2.7% in 2018, which is down 0.1 percentage points from last month’s forecast. In 2019, the panel expects fixed investment to grow 2.8%.

Author:, Economist

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Korea Business Confidence Chart

Korea Business Confidence August 2018

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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