Business Survey Shows Economy in Best Shape in Last 33 Months

Companies feel that the economy has recovered for the first time in two years and nine months due to lower interest rates and the government's measures to prime the economy.
The Federation of Korean Industries (FKI) revealed on January 31 that the business survey index (BSI), which describes companies' impressions about the economy where 100 represents the previous month's performance, recorded 101. This figure expresses companies' opinions that the economy will do better compared to the past month.
This is the first time since May 1996's 118. The BSI conducted by the FKI fell to 35 in January 1998 but had tended to steadily improve since then, from 60 in July 1998 to 98 last month.
Companies feel that domestic sales which marked 104 will improve due to consumer confidence and a boom provided by the upcoming Lunar New Year's. Those surveyed judge that improved money circulation (107) due to lowered interest rates and more foreign currency reserves will buoy the economy.
However, exports recorded a 98 and are predicted to worsen compared to January stemming from shortened work days from the three-day New Year's holiday on February 15 to 18th Additionally, respondents' outlook on companies' investment (98) and profitability (95) reflect the cautioned optimism in the market.