Business sentiment up for first time in 7 months

A majority of companies in Korea expect business conditions to improve in May for the first time in seven months, a survey showed Thursday.

According to the survey by the Federation of Korean Industries of the top 600 companies in terms of sales, the business survey index for May rose to 102.3, up from the previous month’s 95.7. 

A reading above 100 means more companies are optimistic about future business conditions than pessimistic.

This marked the first time since October that the index stood above the 100 mark.

“It is usual to see the index bounce back in May, mostly on expectations that consumer spending could increase thanks to family-oriented activities concentrated during the month,” the FKI said in a press release.

May is when Koreans celebrate Children’s Day and Parents’ Day.

The business lobby said that the index for this year remains below 106.4, an average figure for May over the past 13 years, but it is still higher than the previous year’s 99.4.

(khnews@heraldcorp.com)