Korea: Businesses confidence rises to highest level in nearly two years
March 28, 2014
The Bank of Korea's (BoK) forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector inched up from 85 points in March to 86 points in April. The reading represents the fourth consecutive month of improvement in business sentiment and the highest level since May 2012. Despite the increase, the indicator remains below the 100-point threshold that separates pessimistic from optimistic territory. April's result reflected improving business prospects for both locally-oriented and export-oriented firms. Meanwhile, companies' prospects for future sales improved in April, which meant that sales were better than expected compared to the previous month. According to the BSI's current business situation index, business confidence in the manufacturing sector climbed from 78 points in February to 81 points in March, which marked the highest level in five months. FocusEconomics Consensus Forecast panelists expect fixed investment to expand 3.9% in 2014, which is unchanged from last month's forecast. In 2015, the panel expects fixed investment growth to accelerate to 3.5%.
Author: Ricardo Aceves, Senior Economist