Korea: Business confidence drops on slowing economic growth
October 29, 2012
Business sentiment fell in November, as slowing economic growth weighs on expectations. The forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector deteriorated for a second consecutive month, falling from 72 points in October to 70 points. The deterioration came on the back of more pessimistic prospects for domestic demand growth and sales for Korea's manufactured products. 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 November, the Bank of Korea (BoK) also publishes an index on current perception of business conditions, which refers to October. According to the BoK, current perceptions in the manufacturing sector inched down from 69 points in September to 68 points in October.