MNI POLICY: BOK Business Survey Index Posts 3rd Straight Rise

The business survey index on business conditions in the manufacturing sector posted a third straight rise in August, up 7 points from July's reading to 66, the Bank of Korea said Wednesday.

The reading for the outlook for the following month rose as well, up 7 points to 68, also for the third straight rise.

After seasonal adjustments, the BSI for August 2020 was 68 up 9 points from July, and that for the outlook for the following month rose by 5 points to 68.

In the non-manufacturing sector, the BSI on business conditions stood at 66, up 1 point from July for the fourth straight rise, while that for the outlook for the following month rose by 6 points to 69.

After seasonal adjustment, the BSI came in at 68, up 2 points from July, with the following month reading higher by 5 points to 71.

The Economic Sentiment Index – a composite of the BSI and the CSI (Consumer Survey Index) – for August was 79.7, up 6.9 points from July -- another index recording a fourth straight gain.

The improvement of these indexes came as of exports of automobiles and IT-related goods recovered as economic activities resumed around the globe, although remaining at low levels overall.

Future improvement will likely be impeded by an increase of infectious disease in the country.

South Korea authorities reported the highest daily rise in coronavirus cases since early March on Sunday, calling for stricter social distancing rules as outbreaks continued to spread from a Seoul church and other gatherings.