[Economy 365]

Driven by the semiconductor boom, business sentiment in the manufacturing sector reached its highest level in 4 years and 1 month.

According to the Bank of Korea, the Business Sentiment Index (BSI) for manufacturing stood at 103.2 in July, up 2 points from a month earlier.

The index has risen for four consecutive months since April, and has stayed above the long-term average of 100 for three straight months since May.

This improvement was driven by better business conditions in the shipbuilding, defense, and semiconductor industries, which led to improved business conditions and new orders in related machinery and equipment, precision instruments, and metal fabrication sectors.

Business sentiment improved across the board, not only for large corporations but also for small and medium-sized enterprises, export-oriented companies, and domestic market-oriented companies.

On the other hand, the business sentiment index for the non-manufacturing sector fell to 95.2, marking a decline for the second consecutive month.

Sectors such as transportation, warehousing, wholesale, and retail sluggishly performed as maritime shipping volume decreased and freight rates and logistics costs rose in the wake of the Middle East conflict.

As a result, the all-industry business sentiment index rebounded to 98.5 after a month, but still remained below the baseline of 100.

*This article was produced with AI audio.