Seoul: Business sentiment in South Korea fell for the first time in three months in October, weighed down by a weaker local currency and fewer working days, a central bank survey showed Wednesday. The Composite Business Sentiment Index (CBSI) for all industries came to 90.6 this month, down 1.0 point from September, according to data from the Bank of Korea (BOK).
According to Yonhap News Agency, the decline marked the first since July, after rising for two consecutive months to reach a 10-month high of 91.6 in September. A reading below 100 indicates that pessimists outnumber optimists. The CBSI among manufacturers fell 1.0 point to 92.4, while that for non-manufacturers also dropped 1.0 point to 89.5.
However, the outlook for November showed improvement, rising 2.6 points to 91.1, the survey revealed. “Overall business conditions weakened in October due to fewer working days stemming from the extended Chuseok holiday,” a BOK official explained.
This year’s holiday period extended from October 3-9, as Chuseok, the Korean fall harvest festival, occurred between two national holidays-National Foundation Day on October 3 and Hangeul Day on October 9, which commemorates the creation of the Korean alphabet. “Manufacturing activity, in particular, declined amid higher raw material costs driven by the weak won, while non-manufacturing sectors, especially retail and wholesale, lost momentum as the holiday demand faded,” the official added.
The survey, conducted earlier this month, covered 3,286 companies, including 1,831 manufacturers, the BOK reported.