April 19, 2024

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[THE INVESTOR] Korean manufacturing businesses’ expectations for the coming month rebounded on improved prospects in the chemicals and auto industries, central bank data showed on Aug. 30.

The business survey index  of manufacturers came to 77 for September, up from a 19 month-low of 73 recorded in previous month, according to the Bank of Korea.

The index for chemicals manufacturers gained 10 points to 97, while automakers’ sentiment reached 66 for next month, up four points from a month earlier.

The BOK explained that the global chemicals market is experiencing a supply shortage due to some Chinese firms’ facility maintenance.

Also, the Seoul government’s recent plan for a consumption tax cut boosted business sentiment in the car industry.

When respondents were asked about their current business conditions, however, the index fell to 74 for August from 75 a month earlier.

Confidence still remains low. A reading below 100 means the number of companies forecasting worse business in the coming month is larger than the number expecting better times.

The latest BSI was based on a survey of 3,274 firms conducted from Aug. 14-22, the central bank said.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)