Korea: Forward-looking business confidence falls in August
July 30, 2019
The Bank of Korea’s forward-looking business confidence indicator for manufacturers fell to 71 in August from 75 in July, while confidence in the non-manufacturing sector inched up to 75 in August from 74. Both readings remained entrenched below the crucial 100-point threshold separating pessimism from optimism.
The deterioration in business sentiment among Korean manufacturers was largely driven by their more pessimistic expectations for domestic demand, while they were also more downbeat about expected sales volumes and prices. On a more positive note, goods producers were less downtrodden about export prospects. Meanwhile, their assessment of future raw material prices was unchanged. Information about the drivers of non-manufacturing confidence are not available.
Author: Lindsey Ice, Economist