BOK reports mixed business sentiment for January, outlook improves
The Bank of Korea's Composite Business Sentiment Index (CBSI) for all industries registered 94.0 in January 2026, a slight decrease of 0.2 points from the previous month. However, the outlook for the following month improved by 1.0 points to 91.0, indicating cautious optimism.
Manufacturing optimism contrasts with services dip
The manufacturing sector showed a notable improvement, with its CBSI rising by 2.8 points to 97.5 in January.
The outlook for manufacturing also advanced by 1.0 points to 95.0, driven by increases in production and new orders.
Conversely, the non-manufacturing sector experienced a decline, with its CBSI falling by 2.1 points to 91.7. Despite this, the non-manufacturing outlook for the subsequent month also saw a 1.0 point increase to 88.4, suggesting some underlying resilience.
Business conditions in manufacturing improved by 3 points, while non-manufacturing remained stable.
Broader sentiment index shows slight uptick
The Economic Sentiment Index (ESI), which combines the Business Survey Index (BSI) and the Consumer Survey Index (CSI), recorded 94.0 for January 2026, marking a 0.5 point increase from the preceding month.
This composite index aims to capture the private sector's overall perception of economic conditions.
Furthermore, the cyclical component of the ESI, which removes seasonal and irregular fluctuations to highlight underlying trends, also rose by 0.6 points to 95.8, signaling a modest improvement in the underlying economic sentiment.
Cautious optimism for the months ahead
The latest sentiment data presents a nuanced picture, indicating cautious optimism for the near future despite mixed current conditions.
This divergence between manufacturing and services offers valuable insights into sector-specific dynamics and potential shifts.
However, as a sentiment-based indicator, its predictive power should be weighed against hard economic data for a comprehensive assessment.