S. Korea's manufacturing sentiment for Feb. rebounds

SEOUL, Jan. 29 (Yonhap) -- South Korean manufacturers' confidence for February rebounded from a record low on expectations that a set of economic stimulus packages will help prop up the slumping economy, the central bank said Thursday.

The business survey index (BSI) on manufacturers' expectations rose to 49 for
February, compared to 44 for January, according to the Bank of Korea (BOK). The
index for January hit the lowest mark since January 2003, when the central bank
began to compile related data on a monthly basis.
A reading below 100 means pessimists outnumber optimists. The nationwide survey
of 2,929 companies was conducted from Jan. 14-21.
"A set of rate cuts and economic stimulus plans helped lift manufacturers'
confidence for February," said Chang Young-jae, a BOK official. "But the rebound
came like a reflex as the index for January severely worsened. Amid the deepening
economic downturn, manufacturers' sentiment is expected to remain weak down the
road."
The BSI for the export outlook came in at 60 for the next month, up a mere one
point from January as exports, the mainstay of economic growth, are expected to
be dented further amid the deepening global slump. The index for January hit the
lowest level since the third quarter of 1996, when the BOK started to compile
related data, it added.
The survey comes as the South Korean economy shrank 5.6 percent last quarter from
three months earlier, the sharpest fall since the Asian financial crisis a decade
ago, due to faltering exports and sluggish domestic demand.
In January, the BOK cut its key interest rate by half a percentage point to an
all-time low of 2.5 percent in a bid to bolster the sharply slowing economy.
Since October, the bank has slashed the rate by a combined 2.75 percentage
points.
sooyeon@yna.co.kr