Korea: Businesses confidence stabilizes at two year high
April 30, 2014
In May, the Bank of Korea's (BoK) forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector remained at the 86 points recorded in April, which is the highest level that has been recorded since May 2012. The indicator is still hovering below the 100-point threshold that separates pessimistic from optimistic territory.
May's result showed that improving business prospects for domestic-oriented firms offset more pessimistic expectations for export-oriented businesses. Meanwhile, companies' prospects for future sales improved in May, which meant that business' view of their future profitability improved compared to the previous month.
According to the BSI's current business situation index, business confidence in the manufacturing sector edged up from 81 points in March to 82 points in April.
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