Latest news with #CompositeBusinessSentimentIndex
Korea Herald
28-05-2025
- Business
- Korea Herald
Biz sentiment improves for 3rd consecutive month in May: BOK survey
South Korea's business sentiment improved for the third straight month in May amid eased uncertainties at home and abroad, a central bank poll showed Wednesday. The Composite Business Sentiment Index for all industries came to 90.7 in May, up 2.8 points from the previous month, according to the survey by the Bank of Korea. It marked the first time since November that the index stayed above the long-term average of about 90. The CBSI among manufacturers climbed 1.6 points from a month earlier to 94.7 in May, and that among nonmanufacturers went up 3.6 points to 88.1. The index measures corporate prospects for business conditions. A reading below 100 means pessimists outnumber optimists. Business sentiment had deteriorated since late last year, hitting the lowest level in about 4 1/2 years of 85.3 in February, due mainly to former President Yoon Suk Yeol's declaration of martial law and uncertainties triggered by US President Donald Trump's new tariff scheme. Following the martial law imposition, Yoon was impeached in late December and formally removed from office in April, setting the stage for the presidential election scheduled to take place next Tuesday. Another key factor that led to the improvement in business sentiment was the US' announcement made in April to pause the imposition of reciprocal tariffs on trade partners, including a 25 percent duty on South Korean imports. Negotiations are under way between South Korea and the US on the tariff scheme, as the two sides have agreed to pursue a "July package" deal addressing trade and related issues, aiming to reach an agreement before July 8, when Trump's 90-day suspension of the tariffs is to expire. The outlook for May also added 3.2 points to 89.5, the survey showed. The poll, conducted earlier this month, involved 3,297 companies, including 1,852 manufacturing firms, the BOK said. (Yonhap)
Korea Herald
21-02-2025
- Business
- Korea Herald
Biz sentiment at 4-yr low in Feb. amid weak momentum: BOK survey
South Korea's business sentiment fell to the lowest in over four years this month due mainly to weak domestic demand and economic uncertainties, a central bank poll showed Friday. The Composite Business Sentiment Index in all industries for February came to 85.3, down 0.6 point from the previous month, according to the survey by the Bank of Korea. It marked the lowest level since September 2020, when the index came to 83 amid the COVID-19 pandemic. The index has been on a constant decline since November, with the sentiment worsening markedly after Yoon declared a shocking, albeit short-lived, martial law on Dec. 3, which led to his impeachment and arrest. The outlook for March, however, rose 2.6 points to 88. The index measures corporate prospects for business conditions. A reading below 100 means pessimists outnumber optimists. The CBSI among manufacturers climbed 1.1 points from a month earlier to 90.1 in February, but that among nonmanufacturers lost 1.9 points to 81.7. Nonmanufacturers cited weak domestic demand, economic uncertainties and rising labor costs as major reasons for their view, according to the poll. The economic sentiment index, or ESI, which reflects sentiment among both consumers and businesses, rose 3.5 points to 90.2. It marked the sharpest gain since June 2019, the data showed. "Auto and several other industries have reported export growth, but domestic demand remains weak, and the construction sector has suffered difficulties," a BOK official told reporters. The central bank earlier forecast the South Korean economy to expand 1.9 percent in 2025, slowing from last year's 2.2 percent expansion. But the 2025 projection is widely expected to be lowered to around 1.6 percent, given sagging consumption and investment, political instability and uncertainties stemming from the Donald Trump administration's new trade and economic policies. (Yonhap)
