Yet despite the surge, overall confidence remains mired below levels typically associated with economic optimism.
The central bank’s composite business sentiment index (CBSI) climbed 2.8 points to 90.7 in May, marking its third consecutive monthly gain and the most significant increase since May 2023, when the index rose by 4.4 points.
Still, the index remains well under the neutral benchmark of 100, indicating that more companies viewed business conditions negatively than positively.
Manufacturers led the improvement, with their sentiment index rising 1.6 points to 94.7 — the fifth straight month of gains since dipping to 87.1 in December. The recovery was fueled in part by improved funding and operating conditions, the central bank said.
"While the all-industry index has shown steady improvement, it still falls short of the long-term average of 100, making it difficult to describe the outlook as optimistic," said Lee Hye-young, a senior official at the Bank of Korea, during a press briefing.
Lee added that the tariff reprieve provided only a temporary boost and warned that export performance remained subdued in most sectors, with the notable exceptions of semiconductors and shipbuilding.
reporter
Kim Dong-young
davekim0807@ajupress.com
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