Hankyung Research Institute "Economic Outlook Improves on Semiconductor Expectations... Negative Sentiment Persists"

[Asia Economy Reporter Changhwan Lee] Corporate business outlook improved for the second consecutive month amid expectations of a semiconductor industry recovery.

The Korea Economic Research Institute announced on the 29th that the Business Survey Index (BSI) for 600 major companies based on sales showed a slight increase to 92.0 in February compared to 90.3 in the previous month.

A BSI forecast above the baseline of 100 indicates that more companies have a positive outlook on the economy, while a figure below 100 indicates the opposite.

The BSI forecast dropped to 90.0 in December last year but then rose again. The Korea Economic Research Institute explained that this reflects the base effect from last year's economic downturn and expectations of a semiconductor industry recovery.

Nevertheless, companies' perceived economic conditions remain predominantly negative. This is due to the high possibility of economic sluggishness in advanced countries, ongoing uncertainties such as the US-China trade conflict, and risks of low growth in China.

Reflecting these factors, the BSI forecast has remained below the baseline for 21 consecutive months.

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