Business sentiment falls in September due to rising costs: BOK

Korea’s business sentiment contracted in September from a nearly four-year high in August, largely due to increased costs, a central bank survey showed on Tuesday.

The Composite Business Sentiment Index (CBSI) for all industries stood at 99.1 in September, down 0.5 points from the previous month, according to data from the Bank of Korea (BOK).

In August, the reading rose to its highest level since September 2022, after the Covid-19 pandemic, to reach 102.

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

The BOK said that business sentiment in the nonmanufacturing sector, including transportation and leisure, improved. It declined in the manufacturing sector.

The CBSI among manufacturers stood at 99.5 this month, down from 103.8 the previous month, while the index for nonmanufacturing companies increased to 98.9 from 96.7 over the cited period.

The outlook for October stood at 99.6, unchanged from the previous month, the survey showed.

Yonhap