S. Korea Business Confidence Up in April

(MENAFN) South Korean business confidence improved in April, lifted by stronger sales and a surge in fresh orders within the manufacturing sector, data from the country's central bank revealed Tuesday — though sentiment remains below the long-term benchmark amid persistent domestic and global uncertainties.

The composite business sentiment index (CBSI) across all industries climbed 0.8 points month-on-month to 94.9 in April, the Bank of Korea (BOK) reported.

The uptick was driven primarily by expanded sales volumes, rising new orders, and a drawdown in product inventories across the manufacturing sector — gains strong enough to offset headwinds from elevated raw material costs and production disruptions in certain industries linked to ongoing Middle East tensions.

Breaking down the figures, the CBSI for manufacturers advanced 2.0 points to 99.1, while the non-manufacturing index posted a modest gain of 0.1 points to reach 92.1. Both readings, however, remained below the long-term average threshold of 100, underscoring the fragility of the recovery.

The findings were drawn from a survey of 3,205 firms — 1,781 manufacturers and 1,424 non-manufacturers — conducted between April 9 and 16.

Manufacturers flagged rising raw material prices, broad economic uncertainty, and sluggish domestic demand as their foremost business obstacles. Non-manufacturers echoed similar concerns, citing commodity price increases, an uncertain economic outlook, and weakening consumer spending.

On a wider measure, the economic sentiment index (ESI) — which incorporates both business and consumer outlooks — slipped 2.3 points to 91.7 in April, signaling that household confidence has yet to mirror the cautious optimism emerging from the corporate sector.

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