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Manufacturing confidence soars to 1-year high in June

According to Yonhap News,

(SEOUL=Yonhap News) South Korean manufacturers' business sentiment climbed to a 12-month high for June with more companies anticipating improved conditions for their financing and employment in the upcoming month, a poll showed Monday.

The business survey index (BSI) of manufacturing companies came to 74 for next month, up from 73 for May, according to the survey by the Bank of Korea (BOK).

The June reading marks the highest level since June 2015. A reading below 100 means pessimists outnumber optimists, while a reading above the benchmark means the opposite.

The improvement in business sentiment came mostly from more companies expecting better financial and employment conditions.

An index for the companies' financial conditions came to 85 for June, up from 84 for May. A separate index for employment gained 2 points to 99 over the cited period.

Those surveyed, however, anticipated worse conditions for their exports and domestic sales.

The index for exports came to 84 for June, compared with 87 for May, while the index for domestic sales also lost 3 points over the cited period to 83, according to the BOK.

South Korea's exports have dropped every single month since the start of 2015, plunging 11.2 percent on-year in April.

Large companies expected a slight improvement in their business conditions, registering a BSI reading of 79 for the upcoming month, compared with 78 for May.

The business sentiment of smaller firms remained unchanged from a month earlier at 67.

The monthly survey was conducted between May 16-23 on 2,797 local manufacturers and nonmanufacturing firms.

Out of 1,700 manufacturing companies surveyed, 25.9 percent said sluggish local consumption created the most serious problem for their businesses in May, while 18.1 percent and 11.1 cited economic uncertainties and poor exports, respectively.

Meanwhile, the BOK said the BSI of nonmanufacturing companies came to 73 for June, down from 75 for May.

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Source: Yonhap News (May 30, 2016)
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