S. Korean manufacturers' biz confidence rises for Feb.

SEOUL, Jan. 28 (Yonhap) -- South Korean manufacturers' business confidence
improved for February thanks to a faster-than-expected economic recovery, the
central bank said Thursday.

The index of manufacturers' business expectations climbed to 92 for February from
90 in January, according to the Bank of Korea (BOK).
The index for their business confidence climbed for the second straight month for
February. The index had declined for two straight months after climbing to a
two-year high of 94 for October, it added.
The index measures manufacturers' outlook on business conditions for the coming
month. A reading below 100 means pessimists outnumber optimists. The nationwide
survey of 2,774 companies was conducted from Jan. 14-21.
"The rise in the index pointed to growing prospects for the economic recovery,"
Son Won, an official at the BOK said. "But large companies and exporters'
business confidence for February fell mainly because they were concerned about
profitability due to the won's gain."
Larger companies' business confidence for the next month declined by 3 points to
96 and that of exporters reached 92 for February, down from 94 the previous
month, the BOK added.
Meanwhile, the index gauging manufacturers' assessment of the current business
conditions reached 93 in January, up from 89 the previous month and marking the
highest level since 96 registered in the fourth quarter of 2002.
A batch of economic data is backing up growing optimism that the Korean economy
is fast pulling out of its worst downturn in more than a decade. But still-chilly
job markets and economic uncertainty at home and abroad are adding to doubts
about the sustainability of the recovery.
Asia's fourth-largest economy avoided a yearly contraction in 2009 by growing 0.2
percent on the back massive economic stimulus and rate cuts. But Korea's economic
growth lost steam in the fourth quarter as the effect of fiscal spending waned
and consumer spending declined. It grew 0.2 percent in the final quarter of last
year from three months earlier.
The government put its growth forecast at 5 percent this year, but has said it
will maintain an "expansionary" policy for the time being as the recovery has yet
to be assured.
On Jan. 8, the BOK froze the key interest rate at a record low of 2 percent for
11 months in a row after cutting a combined 3.25 percentage points between
October 2008 and February.
sooyeon@yna.co.kr
(END)

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