Business confidence hits four-year high

Korea's business sentiment rose to a more than four-year high in October, driven by solid confidence in manufacturing and an improved outlook in nonmanufacturing, a central bank survey showed Thursday.

The Composite Business Sentiment Index (CBSI) for all industries stood at 104.2 in October, up 5.1 points from the previous month, according to data from the Bank of Korea (BOK).

The reading marked the highest level since August 2022, when the index recorded 105.5 after the Covid-19 pandemic.

The index measures corporate outlooks on overall business conditions, with a reading below 100 indicating that pessimists outnumber optimists.

"Increased investment and production in major sectors, including semiconductors, automobiles and shipbuilding, boosted related upstream industries," a BOK official said. "A strengthening Korean won also helped local firms ease the financial burden of purchasing imported raw materials."

The CBSI among manufacturers climbed 6.1 points on month to 105.6 in October, marking the highest point in more than four years since June 2022, when the reading stood at 107.1.

The manufacturing index had surpassed the 100 mark for the fourth consecutive month after topping the threshold in May for the first time since August 2022 but dropped to 99.5 in September.

The index among nonmanufacturers also went up 4.3 points on month to 103.2, the highest level since September 2022.

The outlook for November rose 2.2 points to 101.8 from the previous month's prospect of 99.6, the survey showed.

The economic sentiment index, which reflects sentiment among both consumers and businesses, went up 0.9 points to 100.8 in October.

Yonhap