Korea: Business confidence rebounds in September
August 30, 2012
Business sentiment rebounded in September after the worsening crisis in Europe dampened export prospects and caused the index to plummet in August. The forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector rose from 70 points in August, which had marked the lowest level since May 2009, to 75 points in September. The improvement came on the back of slightly less pessimistic prospects for export growth and sales despite tensions in the Eurozone, which continue to weigh on demand for Korea's manufactured products. 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 September, the Bank of Korea (BoK) also publishes an index on current perception of business conditions, which refers to August. According to the BoK, current perceptions in the manufacturing sector inched up from 71 points in July to 72 points in August.