Business sentiment hits yearly high in December

Dec 30, 2025, 08:35 am

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Containers are stacked at Busan Port, reflecting improved business sentiment toward the end of the year.

South Korean companies’ business sentiment rose for a second consecutive month in December, reaching its highest level in a year and five months, driven by expanded facility investment and year-end seasonal demand.

According to the December Business Survey released on Dec. 30 by the Bank of Korea, the Composite Business Sentiment Index (CBSI) for all industries climbed 1.6 points from the previous month to 93.7. This marked the highest reading since July last year, when the index stood at 95.5.

The CBSI is calculated based on key Business Survey Index (BSI) components—five from manufacturing and four from non-manufacturing sectors. A reading above 100 indicates optimistic sentiment compared with the long-term average, while a figure below 100 suggests pessimism.

By sector, the manufacturing CBSI rose 1.7 points month on month to 94.4, supported by improvements in financial conditions and production. The non-manufacturing CBSI also gained 1.4 points to 93.2, as stronger sales and cash flow boosted confidence amid year-end consumption.

Looking ahead to January, however, sentiment is expected to diverge. The manufacturing CBSI outlook increased 1.9 points to 93.6, while the non-manufacturing outlook fell sharply by 4.1 points to 86.6. As a result, the overall CBSI forecast for all industries is projected to decline 1.7 points to 89.4.

Lee Hye-young, head of the Economic Sentiment Survey Team at the Bank of Korea, said year-end seasonal factors had a positive impact mainly on non-manufacturing sectors, while manufacturing sentiment benefited from improvements in industries linked to U.S. facility investment.

Among manufacturing industries, sentiment improved notably in metal processing, machinery and equipment, and automobiles. In the non-manufacturing sector, professional, scientific and technical services, wholesale and retail trade, and information and communications showed stronger conditions.

Meanwhile, the Economic Sentiment Index (ESI), which combines business and consumer sentiment, edged down 1 point from the previous month to 93.1 in December. The seasonally adjusted cyclical component of the ESI rose 0.7 points to 94.9.

#business sentiment #CBSI #Bank of Korea #facility investment #year-end demand