Business sentiment dips to 99.1 as manufacturing slows
South Korea's all-industry Composite Business Sentiment Index fell by 0.5 points to 99.1 in September 2026, according to the Bank of Korea. A 4.3-point decline in manufacturing outweighed gains across non-manufacturing sectors.
Manufacturing slide offsets services gains
The manufacturing Composite Business Sentiment Index (CBSI) dropped 4.3 points to 99.5 in September, reversing previous gains.
New orders in the sector experienced the steepest decline, falling 5 points to 87, while production dropped 3 points to 89. Business conditions deteriorated by 2 points to 79, and inventories rose by 3 points to 103, reflecting countercyclical accumulation.
In contrast, non-manufacturing sentiment improved, with its CBSI rising 2.2 points to 98.9. Business conditions in non-manufacturing rose 2 points to 75, profitability increased by 1 point to 82, and the financial situation index improved 2 points to 83. Sales in the services sector remained unchanged at 84.
Consumer boost lifts headline sentiment
The broader Economic Sentiment Index (ESI), which combines business and consumer survey results, edged up 0.5 points to 99.9 in September.
Its cyclical component rose 0.7 points to 98.3, continuing a steady upward trajectory from 95.3 in March.
The outlook for all-industry sentiment in October remained unchanged at 99.6, with manufacturing expectations dropping 1.4 points to 101.1 while non-manufacturing outlooks rose 1.0 point to 98.6. The survey covered 3,163 responding firms out of 3,524 sampled.
A deceptive surface stability
Headline sentiment near 100 masks a sharp divergence between resilient consumers and a weakening industrial base.
Falling manufacturing orders show that factory momentum is stalling despite non-manufacturing gains.
Without industrial recovery, headline sentiment cannot sustain its upward path.