Korea: Business confidence rises to six-month high
April 18, 2012
Business sentiment improved in April for a third consecutive month, rising to the highest level observed since October 2011. The forward-looking Business Survey Index (BSI) on business conditions in the manufacturing sector rose to 85 points, up from 84 points in March. The improvement came on the back of better prospects for exports, sales and domestic demand growth. That said, despite the improvement, the index remains well below the 100-point threshold that separates optimistic from pessimistic territory. Along with the prospective business confidence indicator for April, the Bank of Korea (BOK) also published an index on current perception of business conditions, which refers to March. According to the BOK, current perceptions in the manufacturing sector inched up to 81 points in March from 80 points in February. Depressed business sentiment does not bode well for investment going forward.