Biz sentiment rises to near 4-year high in August on improved service outlook in vacation season: BOK

Korea's business sentiment reached a near four-year high in August, as highlighted by a Bank of Korea (BOK) survey. The Composite Business Sentiment Index (CBSI) for all industries increased to 99.6 in August, marking a 1.1 point rise from the previous month. This level is the highest since September 2022, when the index reached 102 following the COVID-19 pandemic. The index gauges corporate perspectives on overall business conditions; a reading below 100 signifies that the pessimists outnumber optimists.

The improvement in business sentiment was particularly notable in the non-manufacturing sector, which encompasses transportation, leisure, broadcasting, and film. During the peak summer vacation season, sentiment in this sector improved. The CBSI among manufacturers climbed by 0.6 points to 103.8 in August compared to the prior month. Meanwhile, the index for non-manufacturing companies rose by 1.5 points to 96.7. The manufacturing index surpassed the 100 mark for the fourth consecutive month, following its previous peak.