S.Korea's business confidence remains frozen on weak consumption, exports

Confidence among South Korean businesses remained frozen due to lackluster private consumption and sagging exports, central bank data showed on Thursday.

The business sentiment index (BSI) among manufacturers stood at 72 in December, unchanged from the previous month, according to the Bank of Korea (BOK).

The reading below 100 means pessimists outnumbered optimists. It is based on a survey of 1,793 manufacturers and 1,093 non-manufacturers.

The BSI hovered between 71 and 72 during the April-December period, bolstering worry about lower corporate investment. Companies have refrained from spending capital amid soft consumer spending and faltering exports.

The BSI for January was 71, indicating businesses are unlikely to expand facility and hire jobs in the first month of next year.

Manufacturers picked weak private consumption as the biggest difficulty in doing businesses. Political unrest led consumers to restrict spending as the impeachment of President Park Geun-hye caused a power vacuum and the absence of economic control tower.

The BSI among non-manufacturers came in at 74 in December, up 1 point from the previous month. Endit