Business sentiment in South Korea down in October

The South Korean central bank (BOK) said Tuesday that the South Korean business sentiment in the domestic economy fell in October due to concerns about the economic downturn.

South Korea’s Business Survey Index (BSI) across all industries fell two points in October from the previous month to 76 amid pressure from interest rate hikes. The majority has increased concerns about the economic downturn amid continued high inflation.

BOK data show that the manufacturing BSI fell two points to 72 in October, while the non-manufacturing BSI fell two points to 79 in October.

Manufacturing companies see rising commodity prices, economic uncertainty, and volatility in the foreign exchange market as major obstacles to doing business.

Non-manufacturing companies see the main obstacle as economic uncertainty, including higher costs for raw materials and personnel.

The Economic Survey Index (ESI), which reflects business and consumer sentiment, stood at 95.5 points in October, down 2.5 points from September.

An index below 100 indicates that companies with a negative outlook outweigh those with a positive outlook.

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