The Bank of Korea on Oct. 29 said October's composite business sentiment index for all industries rose 5.1 points from the previous month to 104.2. Shown is an aerial view of Busan New Port (Busan Port Authority)

By Kim Seon Ah

Business sentiment among domestic companies has reached its highest level in four years and two months thanks to strong performances in key industries such as semiconductors and cars.

Quoting its business survey results for this month, the Bank of Korea on Oct. 29 said its composite business sentiment index (CBSI) for all industries rose 5.1 points from the previous month to 104.2.

This was the highest figure since 105.5 in August 2022, with the hike also the largest in 5 1/2 years.

The CBSI measures overall corporate perceptions of economic conditions, with a figure above the long-term average of 100 indicating an optimistic outlook. The index for all sectors exceeded 100 for the first time since September 2022.

By sector, manufacturing saw its CBSI climb 6.1 points to 105.6, its highest level since June 2022. Small and medium enterprises saw a jump of 11.2 points to 105.6 and companies focused on the domestic market 8.1 to 103.8, outpacing both large corporations and export-oriented businesses.

The non-manufacturing CBSI also rose 4.3 points to 103.2 thanks to improvements in sales and profitability.

The survey was conducted from Oct. 14-21, with 3,450 of 3,639 businesses nationwide responding.

sofiakim218@korea.kr