Korea's Business, Economic Sentiment Indexes decline in June
The Bank of Korea's Composite Business Sentiment Index (CBSI) for all industries fell 1.2 points to 97.7 in June 2026, with the outlook also declining. The Economic Sentiment Index (ESI), a composite of business and consumer sentiment, also decreased by 0.7 points to 96.8.
Sentiment cools across sectors
The Composite Business Sentiment Index (CBSI) for all industries registered 97.7 in June 2026, a decrease of 1.2 points from the previous month.
The outlook for the following month also saw a decline of 2.4 points, settling at 95.2. In the manufacturing sector, the CBSI for June 2026 increased slightly by 0.4 points to 101.2, yet its outlook for the subsequent month fell by 2.1 points to 98.2. Conversely, the non-manufacturing sector experienced a more pronounced drop, with its CBSI for June 2026 decreasing by 2.1 points to 95.4. The outlook for non-manufacturing also declined significantly by 2.7 points to 93.2. Overall, the Economic Sentiment Index (ESI) for June 2026, which combines business and consumer sentiment, stood at 96.8, down 0.7 points from May.
Gauging private sector confidence
The Business Survey Index (BSI) provides insights into current and future business conditions, compiled from company perceptions across 15 items including sales and profitability.
The Composite Business Sentiment Index (CBSI) further aggregates key BSI components, standardizing them against a long-term average from 2003 to the previous year.
A CBSI above 100 indicates positive business expectations compared to this average.
The Economic Sentiment Index (ESI) offers a comprehensive view of private sector economic conditions by combining the BSI and the Consumer Survey Index (CSI).
Like the CBSI, an ESI reading above 100 signifies economic sentiment better than past averages, reflecting both business and consumer perspectives.
A cautious mid-year outlook
The broad-based decline in both current sentiment and future outlooks suggests increasing caution within the Korean private sector.
While manufacturing showed a marginal current improvement, its negative outlook signals potential headwinds ahead.
This collective softening of sentiment across industries and consumers indicates a challenging economic environment for the latter half of the year.