Corporate Sentiment Index Hits 13-Month High in November on Semiconductor Boom

(Seoul=Yonhap Infomax) Jin Woo Oh – South Korea’s ongoing semiconductor boom propelled the Composite Business Survey Index (CBSI) for all industries to rebound in November, reaching its highest level in 13 months.

According to the Bank of Korea’s “November Business Survey and Economic Sentiment Index (ESI)” released on the 26th, the all-industry CBSI rose 1.5 points from the previous month to 92.1.

This marks the highest reading since October last year, when the index stood at 92.5.

The index had climbed for two consecutive months in August and September before declining in October due to the extended Chuseok holiday, but rebounded within a month.

The CBSI is calculated using key indices from the Business Survey Index (BSI)—five from manufacturing and four from non-manufacturing sectors. A reading above the baseline of 100 indicates optimism compared to the long-term average, while a figure below 100 signals pessimism.

The Bank of Korea noted, “With the number of business days recovering and the semiconductor boom continuing, sentiment in manufacturing improved. Non-manufacturing sectors also saw gains, particularly in wholesale and retail, on the back of recovering consumer sentiment.”

The manufacturing CBSI rose 0.3 points to 92.7, while the non-manufacturing index climbed 2.3 points to 91.8.

Manufacturers reported positive assessments of product inventories and overall business conditions. However, sentiment regarding financial conditions deteriorated due to the rising USD/KRW exchange rate.

By company size, large manufacturers saw improved sentiment, while small and medium-sized enterprises (SMEs) experienced a decline compared to the previous month.

Export-oriented firms reported a recovery in sentiment, whereas domestic demand-focused companies saw a deterioration from the prior month.

In the non-manufacturing sector, both profitability and financial conditions contributed positively.

The CBSI outlook for December remained unchanged from the previous month at 91.1.

The manufacturing CBSI outlook fell 0.9 points to 91.7, while the non-manufacturing outlook rose 0.5 points to 90.7.

Breaking down the November BSI, the manufacturing sector saw strength in electronics, visual, and communications equipment, driven by rising memory prices and robust exports.

Metal processing also improved, supported by increased orders from shipbuilders and offshore wind power projects.

In non-manufacturing, wholesale and retail trade was buoyed by pharmaceuticals and agricultural products. The information and communications sector improved, led by game companies launching new titles, while the transport and warehousing sector benefited from a rebound in international freight rates and lower oil prices.

Meanwhile, the Economic Sentiment Index (ESI)—a composite of the BSI and Consumer Sentiment Index (CSI)—fell 0.3 points to 94.1 in November. The cyclical component rose 0.8 points to 94.6.

jwoh@yna.co.kr

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