ID :
58322
Thu, 04/30/2009 - 09:46
Auther :
Shortlink :
https://www.oananews.org//node/58322
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S. Korean manufacturers' sentiment rises to 7-month high for May
SEOUL, April 30 (Yonhap) -- South Korean manufacturers' confidence for May rose to a seven-month high as a stabilizing currency and improving economic indicators fueled corporate optimism, the central bank said Thursday.
The business survey index (BSI) of manufacturers climbed from 60 in April to 71
for May, the highest since October last year, the Bank of Korea (BOK) said in a
report.
A reading below 100 indicates pessimists outnumber optimists. The nationwide poll
of 2,129 companies was conducted from April 15-22.
"The sharp increase in consumer confidence came as companies expect a stabilizing
local currency to help improve their profits by reducing import bills," Chang
Young-jae, a BOK official said. "The worst phase of manufacturers' sentiment
seems to be past, but it still remains apart from being positive," Lee noted.
The companies' confidence for the current month also gained sharply. The BSI for
manufacturers' sentiment jumped to 69 for April, compared with 57 the previous
month.
The latest report is in line with a sharp rise in consumer sentiment, made public
by the central bank on Monday. The measure of local households' sentiment rose to
a nine-month high of 98 in April, up from 84 a month earlier.
The upbeat manufacturer data came as the South Korean economy narrowly averted
slipping into the first economic recession in a decade, fueled by state
pump-priming and a slowdown in export contraction. The economy expanded 0.1
percent in the January-March period from the previous three months, after posting
a 5.1 percent contraction in the fourth quarter of 2008.
The key stock index KOSPI has gained 19 percent so far this year after plunging
40 percent last year due to the collapse of the U.S. investment bank Lehman
Brothers.
The won climbed 17 percent against the U.S. dollar as of Wednesday since hitting
a yearly low on March 2.
Earlier this month, the central bank froze its key interest rate for the second
straight month, ending aggressive rate reductions, citing a slowdown in economic
freefall.
The business survey index (BSI) of manufacturers climbed from 60 in April to 71
for May, the highest since October last year, the Bank of Korea (BOK) said in a
report.
A reading below 100 indicates pessimists outnumber optimists. The nationwide poll
of 2,129 companies was conducted from April 15-22.
"The sharp increase in consumer confidence came as companies expect a stabilizing
local currency to help improve their profits by reducing import bills," Chang
Young-jae, a BOK official said. "The worst phase of manufacturers' sentiment
seems to be past, but it still remains apart from being positive," Lee noted.
The companies' confidence for the current month also gained sharply. The BSI for
manufacturers' sentiment jumped to 69 for April, compared with 57 the previous
month.
The latest report is in line with a sharp rise in consumer sentiment, made public
by the central bank on Monday. The measure of local households' sentiment rose to
a nine-month high of 98 in April, up from 84 a month earlier.
The upbeat manufacturer data came as the South Korean economy narrowly averted
slipping into the first economic recession in a decade, fueled by state
pump-priming and a slowdown in export contraction. The economy expanded 0.1
percent in the January-March period from the previous three months, after posting
a 5.1 percent contraction in the fourth quarter of 2008.
The key stock index KOSPI has gained 19 percent so far this year after plunging
40 percent last year due to the collapse of the U.S. investment bank Lehman
Brothers.
The won climbed 17 percent against the U.S. dollar as of Wednesday since hitting
a yearly low on March 2.
Earlier this month, the central bank froze its key interest rate for the second
straight month, ending aggressive rate reductions, citing a slowdown in economic
freefall.
