South Korean Business Sentiment Rebounds in July on Manufacturing Recovery

Dragon Media News Desk

Business sentiment in South Korea rebounded in July as conditions improved across several manufacturing industries.

According to data released Thursday by the Bank of Korea, the composite business sentiment index for all industries rose by 0.8 points from the previous month to 98.5. The index had fallen by 1.2 points in June.

The central bank said the recovery was supported by improvements in manufacturing sectors, including machinery, precision instruments and fabricated metal products.

The composite business sentiment index for manufacturers increased by 2 points to 103.2. In contrast, the index for non-manufacturing businesses declined by 0.2 points to 95.2.

The findings were based on a survey of 1,783 manufacturing companies and 1,410 non-manufacturing businesses conducted from July 14 to 22.

Manufacturers identified rising raw material prices, economic uncertainty and weak domestic demand as the main obstacles to business operations.

Non-manufacturing companies cited sluggish consumer demand, uncertainty over economic conditions and higher labour costs as their principal challenges.

The economic sentiment index, which reflects confidence among both businesses and consumers, rose by 1.1 points from the previous month to 97.9 in July, according to the Bank of Korea.