Korea: Forward-looking business confidence unchanged in July

The Bank of Korea’s forward-looking business confidence indicator for manufacturers remained stable at June’s 75 in July, while confidence in the non-manufacturing sector rose to 74 from 72. Both readings remained entrenched below the crucial 100-point threshold separating pessimism from optimism.

Korean manufacturers grew more pessimistic about the outlook for foreign demand, sales volumes and profitability for the month of July. Moreover, raw material purchase prices were viewed less favorably. On the bright side, producers were less gloomy about domestic demand, while their outlook on sales prices was unchanged. Meanwhile, information about the drivers of non-manufacturing confidence are not available.

Korea Fixed Investment Forecast

FocusEconomics Consensus Forecast panelists expect fixed investment to fall 2.2% in 2019, which is down 0.7 percentage points from last month’s forecast. In 2020, the panel expects fixed investment to grow 1.5%.