South Korean manufacturing sentiment hits 4-year high amid service sector boost

South Korean businesses reported improved sentiment in August, with the manufacturing sector's outlook reaching its highest level in over four years. The overall business sentiment index (CBSI) climbed for the second consecutive month to 99.6, indicating a growing optimism among firms. This upward trend is largely attributed to enhanced performance in the service sector, including transportation and leisure industries, which benefited from the peak summer vacation period. The Bank of Korea noted that improvements in product inventory and financial conditions also contributed to the manufacturing sector's positive sentiment. While large corporations saw a slight dip, small and medium-sized enterprises experienced a notable increase in their sentiment index. Looking ahead, businesses anticipate further improvements in September, with both manufacturing and non-manufacturing sectors expected to see gains.