Korea: Business confidence deteriorates
June 27, 2012
Business sentiment deteriorated further in July. The forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector fell to 84 points from 86 points in June. The weakening came on the back of deteriorating prospects for export growth and sales, as tensions in the Eurozone continue to weigh on global demand. With the monthly drop, the index moved further below the 100-point threshold that separates optimistic from pessimistic territory. Along with the prospective business confidence indicator for July, the Bank of Korea (BoK) also publishes an index on current perception of business conditions, which refers to June. According to the BoK, current perceptions in the manufacturing sector remained unchanged at 84 points for the third consecutive month.