All-industry business sentiment rises 1.1 points to 99.6 in August
South Korea's Composite Business Sentiment Index for all industries rose by 1.1 points month-on-month to 99.6 in August 2026. The broader Economic Sentiment Index also gained 1.5 points to reach 99.4, according to survey results from the Bank of Korea.
Manufacturing outpaces services across sectors
The manufacturing sector drove the overall improvement, with its Composite Business Sentiment Index climbing 0.6 points to 103.8 in August, remaining above the long-term benchmark of 100. Manufacturing outlook for September also gained 2.0 points to 102.5. Within manufacturing, financial situation indices rose by 1 point to 82, while new orders remained steady at 92. In contrast, the non-manufacturing sector registered a reading of 96.7, up 1.5 points from July, as sales gained 2 points to 84 and profitability rose 1 point to 81. The non-manufacturing outlook for September advanced 3.9 points to 97.6. Across both segments, current business condition readings held at 81 for manufacturing and 73 for services.
Composite measures approach benchmark
The Economic Sentiment Index, which combines business and consumer survey data, reached 99.4 in August, while its cyclical component rose 0.4 points to 96.9. A reading of 100 represents the long-term average between 2003 and 2025.
The survey gathered responses from 3,170 companies out of 3,524 surveyed entities nationwide between August 10 and 18. Both composite indexes reflect standardized deviations to gauge private sector perceptions relative to historical norms.
A fragile manufacturing-led rebound
The uptick demonstrates stabilizing momentum, yet non-manufacturing sectors still lag below historical baselines.
Factory sentiment remains the sole pillar holding the broader economy close to its long-term average.
Without a broader services rebound, overall business sentiment will struggle to cross the threshold.