Economy

Biz sentiment rebounds in July on stronger manufacturing outlook: BOK

Published Jul 30, 2026 7:44 am KST

Korea’s business sentiment rebounded in July as manufacturers grew more confident on the back of robust semiconductor exports, a Bank of Korea (BOK) survey showed Thursday. The improvement suggests a firmer outlook in the country’s export-led industrial base, even as conditions outside manufacturing remained softer.

The Composite Business Sentiment Index (CBSI) for all industries stood at 98.5 in July, up 0.8 point from the previous month, according to BOK data.

The reading marked a recovery after the index fell 1.2 points in June.

The index measures corporate expectations for overall business conditions, and a reading below 100 indicates that pessimists outnumber optimists.

The CBSI for manufacturers rose 2 points from a month earlier to 103.2 in July, the highest level in more than four years since June 2022, when it stood at 107.1.

The manufacturing index remained above 100 for a third straight month after crossing the threshold in May for the first time since August 2022. For businesses and analysts tracking Korea’s broader economy, that matters because manufacturing sentiment often serves as an early read on production momentum and external demand.

By contrast, the index for nonmanufacturers fell 0.2 point on month to 95.2.

The outlook for August rose 1.3 points to 96.5 from 95.2 in the previous month’s projection, the survey showed.

The economic sentiment index, or ESI, which reflects sentiment among both consumers and businesses, increased 1.1 points to 97.9 in July.