Business Survey Index falls for 4th consecutive month

With both exports and domestic spending growing shakier amid the global economic downturn, South Korean business sentiment has taken a backward step for the fourth month in a row.

According to the Business Survey Index (BSI) results for December 2022 announced by the Bank of Korea on Wednesday, the index for all industries this month was 74, or 1 point lower than the previous month.

The figure is the lowest level in two years and two months since touching 74 in Oct. 2020.

The BSI figure is estimated based on entrepreneurs' judgments of current business conditions and the near-future outlook. When the index falls below 100 it means negative responses outnumber positive ones.

This month's survey was given from Dec. 13 to 20 to 3,255 companies, of which 2,766 (1,639 manufacturers and 1,137 non-manufacturers) responded.

The BSI has been spiraling downward for the fourth month in a row since falling 3 points from 78 in September. By industry, the manufacturing industry BSI (71) fell 3 points, while there was no change in the non-manufacturing industry BSI (76), which includes the service industry.

"As economic uncertainty intensifies and consumer demand grows weaker, the business conditions felt by companies worsened," said Kim Dae-jin, head of the corporate statistics team at the Bank of Korea's Economic Statistics Bureau.

Write to Mi-Hyun Jo at mwise@hankyung.com