Sun, 04 Dec 2022

S.Korea's business sentiment falls in November

Xinhua
23 Nov 2022, 12:55 GMT+10

SEOUL, Nov. 23 (Xinhua) -- Sentiment among South Korean businesses over the economic situation kept falling for the third consecutive month due to lingering worry about inflation and economic downturn, central bank data showed Wednesday.

The business survey index (BSI) in all industries slipped 1 point from a month earlier to 75 in November, according to the Bank of Korea (BOK).

It continued to slide since September as concerns mounted over economic slump amid rapid interest rate hikes to counter runaway inflation.

The BOK began to tighten its monetary policy stance August last year, raising its policy rate in eight steps from a record low of 0.5 percent to 3.0 percent.

The BSI among manufacturers increased 2 points from a month earlier to 74 in November, but the index for non-manufacturers declined 3 points to 76.

Manufacturers picked economic uncertainties, higher commodity prices and weak domestic demand as key barriers to their business, while non-manufacturers selected economic uncertainties and higher costs for personnel and raw materials.

The economic sentiment index (ESI), which reflects sentiment among both businesses and consumers, stood at 91.4 in November, down 4.1 points from the previous month.

The index below 100 indicates pessimists outnumbering optimists. It was based on a survey of 1,628 manufacturers and 1,154 non-manufacturers conducted between Nov. 8 and 15.

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