South Korea Business Confidence Eases in February

South Korea’s business confidence in the manufacturing sector edged lower in February, reflecting softer activity across key indicators.

The Business Survey Index (BSI) for manufacturing stood at 72, down from 73 in January, according to the latest survey data. A reading below 100 indicates pessimism among respondents.

Production declined to 85 from 87, while new orders slipped to 81 from 83, pointing to moderating demand conditions. Inventories fell to 100 from 102, and the financial situation index eased to 80 from 81, suggesting slightly tighter business conditions.

Despite the dip in manufacturing sentiment, broader economic confidence improved. The Economic Sentiment Index (ESI), which combines the BSI and the Consumer Survey Index, rose to 98.8 in February, up 4.8 points from January. The increase signals a modest strengthening in overall economic sentiment, driven in part by improved consumer confidence.

While manufacturers remain cautious, the rise in the composite index suggests underlying resilience in the broader economy.