April 27, 2024
Economy
Biz sentiment at over 2-yr high but still under par
[THE INVESTOR] South Korean manufacturers’ business sentiment reached the highest in over two years, but pessimism still outweighed optimism overall, a survey showed on July 5.
A survey of some 2,200 manufacturing firms put the business sentiment index (BSI) at 94 in the third quarter, up five percentage points from the second quarter, the Korea Chamber of Commerce and Industry said.
The reading marks the highest since the first quarter of 2015, when the comparable figure was 97, but still indicated overall pessimism. The last time the BSI measured above the positive threshold of 100, which means that more businesses expect conditions to improve than get worse, was in the third quarter of 2014.
The chamber said eased political uncertainties following the election of a new president and a proposed extra budget might have boosted the business sentiment.
The outlook for exports in the third quarter stood at 104, but the forecast for domestic demand was just 92, though it rose five points.
It is uncertain whether the warming mood in exports, such as from semiconductors and petroleum products, will spread to the overall economy, the KCCI said.
By sector, sentiment for the refining and petrochemical chemicals sector was the highest, at 142, but automakers and steelmakers were among the most pessimistic.
The Bank of Korea has upgraded its growth forecast for the country to 2.6 percent from 2.5 percent, citing improving exports.
Reflecting this trend the National Assembly’s Budget Office recently raised its forecast for South Korea’s economic growth to 2.9 percent, also citing robust exports and facility spending.
By Alex Lee and newswires (alexlee@heraldcorp.com)
A survey of some 2,200 manufacturing firms put the business sentiment index (BSI) at 94 in the third quarter, up five percentage points from the second quarter, the Korea Chamber of Commerce and Industry said.
The reading marks the highest since the first quarter of 2015, when the comparable figure was 97, but still indicated overall pessimism. The last time the BSI measured above the positive threshold of 100, which means that more businesses expect conditions to improve than get worse, was in the third quarter of 2014.
The chamber said eased political uncertainties following the election of a new president and a proposed extra budget might have boosted the business sentiment.
The outlook for exports in the third quarter stood at 104, but the forecast for domestic demand was just 92, though it rose five points.
It is uncertain whether the warming mood in exports, such as from semiconductors and petroleum products, will spread to the overall economy, the KCCI said.
By sector, sentiment for the refining and petrochemical chemicals sector was the highest, at 142, but automakers and steelmakers were among the most pessimistic.
The Bank of Korea has upgraded its growth forecast for the country to 2.6 percent from 2.5 percent, citing improving exports.
Reflecting this trend the National Assembly’s Budget Office recently raised its forecast for South Korea’s economic growth to 2.9 percent, also citing robust exports and facility spending.
By Alex Lee and newswires (alexlee@heraldcorp.com)
