On Rising Curve

Because of special boom of Korean Thanksgiving Day and increase of exports, big companies feel the economic recovery.

According to the survey of the Federation of Korean Industries (FKI) for top 600 companies, BSI of September recorded 118.5. It was big reversal from the declining of the previous month.

BSI, the forecast of business, increased to 140 from March to May, and declined dramatically from June (121.8) to August (100.4), and so the economy of the second half of this year looked gloomy.

Fortunately, BSI for September became higher than the previous month and the actual BSI that shows actual operation recorded 100.2 in August, so overcame 100 again.

The index over 100 means that the number of optimistic companies for economy is more than that of pessimistic ones.

FKI analyzes the economic recovery with some reasons▽ increase in domestic demand for Thanksgiving Day special boom ▽ increase of export even if the instability of currency rate and the delay of US economy ▽ a symptoms of the recovery of Korea US stock markets.

According to the classification of industries, manufacturing ((120.7) and non- manufacturing (112.7) look positively. All of non-manufacturing industries recorded more than 100 including wholesaler & retailers (130.0) that expect large amount of turnover from the Thanksgiving Day special boom.

According to items, domestic demand (127.4) recorded highest, and export (9110.9 manufacturing) becomes stabilized from declining tendency.

Others such as investment (107.3), financial stability (107.3), employment (107.7), and profitability (115.7) show stability.

Yeon-Su Shin ysshin@donga.com