Business sentiment this month has risen to its highest level in around four years driven by the semiconductor export boom and recovery in consumer spending during the summer vacation season. Shown are containers at Pyeongtaek Port in Pyeongtaek, Gyeonggi-do Province. (Yonhap News)
By Hong Angie
Business sentiment this month has risen to its highest level since September 2022 thanks to the extended semiconductor boom and improvement in non-manufacturing industries.
The Bank of Korea on Aug. 26 in its report on the results of its August business survey and economic sentiment index (ESI) said the composite business sentiment index (CBSI) for all industries rose 1.1 points from July to 99.6, its second straight monthly increase.
The non-manufacturing CBSI climbed 1.5 points to 96.7, leading the overall rise thanks to higher demand for transportation and leisure during the summer vacation season and recovery in broadcasting and information and communications technology.
The manufacturing CBSI inched up six-tenths of a point to 103.8 thanks to improvements in electronics, audiovisual and telecommunications equipment and food products. This was the fourth straight month for this index to remain above the benchmark of 100.
The ESI, which combines business and consumer sentiment, rose 1.5 points to 99.4. The CBSI for all industries in September rose 3.1 points to 99.6, raising expectations for economic recovery.
The improvement of business sentiment across industries is expected to gain momentum based on the strong performance of semiconductor-led manufacturing along with non-manufacturing's recovery.
"While semiconductors performed well, non-manufacturing saw even stronger gains thanks to higher demand for transportation and leisure during the vacation season and recovery in broadcasting and film services," said Park Yong-min, head of the central bank's economic sentiment survey team.
"Following earlier recovery in manufacturing, non-manufacturing has also recently seen improvement, contributing to overall progress in business sentiment."
shong9412@korea.kr
