S. Korea Sees Business Sentiment Bounce After Three-Month Slump
(MENAFN) Sentiment among South Korean companies showed a notable recovery in August, ending a three-month decline as easing concerns over U.S. tariffs and a government stimulus plan lifted business confidence, the Bank of Korea (BOK) reported Wednesday.
The composite business sentiment index (CBSI) across all sectors increased by 1.0 point to 91.0 in August, rebounding after two consecutive months of declines, according to central bank data.
This positive shift was driven largely by ongoing talks between Seoul and Washington over U.S. reciprocal tariffs, alongside a rebound in exports of semiconductors and automobiles.
Further support came from a supplementary budget aimed at stimulating domestic demand through cash handouts, which helped boost sentiment particularly among non-manufacturing industries.
Breaking down the data, the CBSI for manufacturers climbed 1.4 points to 93.3, while non-manufacturers saw a 0.7-point rise to 89.4 compared to July.
Despite the improvement, the index remains below the long-term average of 100, reflecting persistent economic uncertainties.
The August survey covered 1,843 manufacturers and 1,457 non-manufacturers, conducted between August 11 and 19.
Manufacturers cited faltering domestic demand, economic uncertainty, and export slumps as their primary business challenges, whereas non-manufacturers pointed to weaker consumer demand, economic unpredictability, and rising labor costs.
Meanwhile, the broader economic sentiment index (ESI), which measures attitudes among both businesses and consumers, increased 1.7 points from the previous month to 94.6 in August.
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