Confidence among S. Korean manufacturers improves in July

Confidence among South Korean manufacturers improved as sentiment in chipmakers and oil refiners rose on higher product prices and growing demand, central bank data showed on Friday.

Business sentiment index (BSI) for manufacturers came in at 72 in July, up 1 point from a month earlier, according to the Bank of Korea (BOK). The index stayed at 71 in May and June, before rising for the first time in three months.

Pessimistic views among businesses are still prevalent, but the sentiment improved slightly as worries eased about Brexit, or British referendum to leave the European Union (EU).

The reading below 100 means pessimists outnumber optimists. It was based on a BOK survey of 1,767 manufacturers and 1,115 non-manufacturers conducted between July 15 and 22.

The BSI for oil refiners jumped 15 points from a month earlier to 82 in July thanks to higher oil prices. The reading for electronics and communication equipment companies advanced from 66 in June to 76 in July on growing demand for semiconductors.

The index for automakers declined from 88 in June to 80 in July on worries that auto sales would decline due to the expiration of a temporary cut in consumption tax for cars.

Sentiment among shipbuilders rebounded from 29 in June to 40 in July as the ongoing restructuring process among troubled shipyards boosted expectations for improved business conditions.

Meanwhile, the BSI for non-manufacturers stood at 70 in July, down 1 point from the previous month. Endit