Business sentiment rises to 104.2 in October
South Korea's business sentiment index rose 5.1 points to 104.2 in October, according to the Bank of Korea (BOK). The Economic Sentiment Index, combining business and consumer surveys, increased 0.9 points to 100.8.
Manufacturing leads the monthly increase
The Composite Business Sentiment Index (CBSI) reached 105.6 in manufacturing, up 6.1 points, and 103.2 in non-manufacturing, up 4.3 points.
November outlook indices rose to 101.8 overall, up 2.2 points; 103.0 in manufacturing, up 1.9 points; and 101.0 in non-manufacturing, up 2.4 points.
Manufacturing production rose 5 points to 94, new orders increased 4 to 91 and financial situation gained 2 to 83. Inventories fell 6 points to 97; this component moves countercyclically.
Manufacturing business conditions fell 1 point to 78. Non-manufacturing business conditions rose 2 points to 77, sales increased 4 to 88, profitability gained 3 to 85 and financial situation rose 2 to 85.
A revised sample enters
BOK revised the business survey sample from October to improve population representativeness and warned that the revision may affect index comparisons.
The survey ran from October 14 to 21, with 3,450 responses from 3,639 companies.
The Economic Sentiment Index's cyclical component rose 1.0 point to 100.1 after removing seasonal and irregular components.
CBSI and ESI readings above 100 indicate sentiment above long-term averages, with the reference period running from January 2003 to December 2025.
Comparisons require care
The reported gains coincide with a sample revision that BOK says may affect monthly comparisons.
Manufacturing business conditions fell even as its composite index increased.
BOK also cautions against comparing CBSI levels across indices because each uses its own average and standard deviation.