Korea: Forward-looking manufacturing business confidence remains entrenched in pessimism in May
The Bank of Korea’s forward-looking business confidence indicator (BSI) for manufacturers ticked up to 77 in May from 76 in April, while confidence in the non-manufacturing sector also improved slightly from 76 to 77. Both readings nevertheless remained well below the crucial 100-point threshold separating pessimism from optimism.
The marginal improvement was the result of firms’ slightly less downbeat outlook for domestic demand conditions, sales, profitability and raw material purchase prices for May, while sentiment regarding export prospects remained dismal for the survey month.