Korea: Business confidence moderates at start of year
December 30, 2015
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) moderated from 69 points in December to 68 points in January. The index is barely above the two-and-a-half-year low 67 points registered in July 2015, and is still well below the 110-point threshold that separates pessimistic from optimistic territory.
According to the Bank, sentiment among domestic-demand-oriented businesses deteriorated, although confidence among export-oriented firms improved. Expectations regarding sales, sales prices and raw material purchase prices were also down in January compared to the previous month. The outlook on profitability improved only slightly in January.
Meanwhile, the BSI’s current business conditions index ticked down from 68 points in November to 67 points in December.
Author: Carl Kelly, Economist