Korea: Business confidence continues to rise, reaches eight-month high
February 28, 2013
In March, the Bank of Korea's (BoK) forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector jumped to 76 points, up from the 72 points recorded in February. The figure marks the highest level seen in eight months.
The improvement came on the back of less pessimistic prospects for domestic demand growth. In addition, expected sales improved notably over the previous month. Nevertheless, despite the monthly improvement, the index remains well below the 100-point threshold that separates optimistic from pessimistic territory.
Along with the prospective business confidence indicator for March, the BoK also publishes an index on current perception of business conditions, which refers to February. According to the BoK, current perceptions in the manufacturing sector edged up from 70 points in January to 71 points in February, amid a better export and domestic demand outlook.
FocusEconomics Consensus Forecast panellists expect fixed investment to expand 2.0% in 2013, which is down 0.2 percentage points from last month's forecast. In 2014, the panel expects fixed investment to accelerate to 3.9%.