S. Korea's manufacturing sentiment hits 2-year high for Oct.

SEOUL, Sept. 30 (Yonhap) -- South Korean manufacturers' business confidence for
October hit a two-year high on the back of growing optimism about an economic
recovery at home and abroad, the central bank said Wednesday.

The business survey index (BSI) of manufacturers' expectations climbed to 94 for
October, up from 93 the previous month, according to the Bank of Korea (BOK).
The October reading marks the highest level since the index logged the same 94
for October 2007, the central bank said. For September, manufacturers' sentiment
advanced by 13 points, the biggest gain in more than four years.
The index measures manufacturers' outlook on business conditions for the coming
month. A reading below 100 means pessimists outnumber optimists. The nationwide
survey of 2,308 companies was conducted Sept. 15-22.
"Manufacturers' increased optimism came as continued rebounds in global and local
economies are expected to boost consumption," a BOK official said. "Their rising
profitability was also responsible."
The BSI of manufacturers' current business confidence reached 90 in September, up
from 86 the previous month and the highest since March 2006, it said.
Continued upturns in economic activity bolstered consumers' sentiment in recent
months.
The index that measures South Korean consumers' confidence for September reached
the highest level in over seven years, according to the BOK. The consumer survey
index reached 114 for September, the highest level since the third quarter of
2002.
The South Korean economy grew 2.6 percent in the second quarter from three months
earlier, its fastest growth in more than five years, bolstered by massive
economic stimulus measures.
Asia's fourth-largest economy averted a technical recession in the first quarter
by growing 0.1 percent on-quarter after tumbling 5.1 percent in the final quarter
of 2008.
On Sept. 10, the BOK froze the key interest rate at a record low of 2 percent for
the seventh straight month. BOK Gov. Lee Seong-tae cast an upbeat projection on
the economy, signaling a rate hike.
pbr@yna.co.kr
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