South Korean business confidence slips in September as costs rise
The Bank of Korea said its composite business sentiment index fell to 99.1 in September, slipping from the near-four-year high recorded in August as firms grapple with higher costs.
A Bank of Korea survey released on Tuesday showed that South Korea’s composite business sentiment index slipped to 99.1 in September, a 0.5-point decline from the previous month and below the 100 mark that separates optimism from pessimism. The August reading had risen to 102, the highest level since September 2022. The downturn was attributed to rising costs, with manufacturers’ sentiment dropping to 99.5 from 103.8, while non-manufacturing companies saw a slight rise to 98.9 from 96.7.
The bank noted improved sentiment in transportation and leisure sectors, but overall confidence contracted. The forecast for October stayed unchanged at 99.6.
Why it matters
The dip signals growing pressure on South Korean firms and could foreshadow slower economic growth.
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