Manufacturing optimism soars in Korea

[Graphics by Song Ji-yoon]

The latest survey suggests more South Korean manufacturing companies have a positive economic forecast in the second quarter of 2024.

According to the survey conducted by the Korea Institute for Industrial Economics & Trade, there was a notable uptick in optimism among manufacturers for economic activity in the second half of 2024. The Business Survey Index (BSI), an aggregation of confidence indices to grasp future landscapes for manufacturing firms, stood at 100 and 102 on business conditions and sales respectively, and were at their highest levels in two years since the second quarter of 2022.

The index between 100 and 200 means companies with positive economic outlooks outnumber those without.

The outlook for the second quarter of 2024 demonstrates a significant surge compared to the previous quarter, with business conditions climbing by 10 points from 90 to 100 and sales rising by 8 points. All key components, including domestic demand and exports, saw increases quarter-over-quarter.