BSI rises first time in six months

The business survey index (BSI) rose in March for the first time in six months, indicating that industrialists foresee an improvement in overall economic conditions. According to the results of a Federation of Korean Industries (FKI) survey of the nation`s top 600 companies, the latest BSI hit 102.4, indicating that the business environment is on the upswing. A BSI higher than 100 indicates that more people feel that business conditions are likely to improve over the coming month than those who feel that conditions are likely to worsen.

FKI officials said the last time the BSI was above 100 was September of last year, when it reached 105. The BSI dropped to 92 the following month, 81 in November of last year, 68 in December, 62.7 in January and 83 in February. Taking seasonal adjustments into account, the index for this month was actually 101.1.

Officials said the BSI index rose despite sluggish sales caused by the downturn in investment and consumer spending, largely thanks to the stabilization of the financial market and a recovery from slumps in the chemical, cement, light industry and transportation sectors, among others. By sector, the index stood at 117.9 among producers of goods for the domestic market and 111.4 for exporters. Improvements were found in all sectors except textiles, clothing and tires. The beverage and leather and shoe sectors showed especially strong rebounds with BSIs of 140 and 130, respectively.

[Yonhap]