South Korean manufacturers' confidence improved for the second quarter,
reflecting expectations that a U.S. economic recovery will buoy global growth in
the coming months, a government report showed Wednesday.
The
manufacturers' business survey index (BSI) for the April-June period came to
104, up from 89 predicted for the current quarter, according to the report by
the Ministry of Knowledge Economy.
A reading above 100 means optimists
outnumber pessimists with a reading below the baseline meaning the opposite. The
online survey polled 508 manufacturers across the country.
"Overall
business sentiment has gotten a boost from signs that the world's largest
economy is making a comeback and the implementation of South Korea's free trade
pact with Washington," the ministry said.
The U.S. unemployment rate,
a key barometer of economic health, stood at 8.3 percent last month from 8.7
percent in November. The bilateral free trade agreement that went into effect on
March 15 is forecast to push up South Korea's exports by an average of US$1.29
billion every year for the next 15 years.
According to the report, the
BSI numbers for domestic sales, exports and profits all moved up for the coming
quarter, with most industrial sectors exceeding the break-even 100 mark for the
second quarter.
The readings for semiconductors and autos each reached
133 and 108, respectively, with steel hitting 112.
The ministry in
charge of the country's industrial policy and trade promotion, however, said
that local manufacturers face downside risks such as lingering eurozone woes,
high energy prices and a slowdown in growth projected for China this
year.
The actual BSI, or actual conditions for business, in the
January-March period was tallied at 88, with sales at home and abroad standing
at 85 and 91, respectively, according to the report.
Source Text