South Korea’s services companies most optimistic in nine months

SEOUL (Reuters) – Confidence among South Korea’s services sector firms has continued to improve, with their outlook for July the most optimistic in nine months, but manufacturers turned a bit pessimistic, a central bank survey showed on Thursday.

The business outlook index for the services sector rose to 78 for July on a seasonally-adjusted basis, from 75 in June, according to the Bank of Korea’s monthly survey of companies.

The index rose above its two-decade average of 77 for the first time since October 2022, with the survey showing less worries about economic uncertainties overall, despite greater concern over weak domestic demand.

The index for the manufacturing sector, meanwhile, fell to 69 from 70, which was the highest in five months.

South Korea’s economy grew 0.3% in the first quarter from the previous quarter, with private consumption leading the way, after contracting in late 2022. Exports may also be slowly turning the corner after a prolonged slump.

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