SEOUL – South Korean companies are expressing a slightly more pessimistic outlook for April, marking an end to two months of improving sentiment, as a result of slowing domestic spending, according to a recent survey by the Bank of Korea. The Business Sentiment Index (BSI) for the month has been recorded at 71, a slight decrease from March's figure of 72.
According to Yonhap News Agency, this decline in business sentiment is largely attributed to anticipated continued sluggishness in domestic demand. The BSI, which serves as a barometer for corporate expectations regarding business conditions in the upcoming month, demonstrates that pessimists currently outnumber optimists among South Korea's business community, with a score below 100.
Further breakdown of the data revealed sector-specific sentiments; the BSI for manufacturers dropped 2 points to 73 for April, while nonmanufacturing firms saw their index fall 1 point to 69, compared to the previous month. This nuanced view underscores the varying degrees of economic challenges facing different sectors of the economy.