S. Korean June Manufacturer's at 8-Month High

South Korean manufacturers' assessment of the business outlook for June hit an eight-month high, data showed on Friday, indicating the economy had passed its trough.

Korea, Korean Flag
Korea, Korean Flag

The Bank of Korea's business survey index for the manufacturing sector jumped to a seasonally adjusted 74, the highest since October 2008, the central bank said in a statement.

That compared to 67 for May and January's record low of 45, with many manufacturers gaining more confidence amid growing hopes for an economic turnaround, it said.

Separately, the non-manufacturing sector's seasonally-adjusted business survey index also climbed to an eight-month high of 75 for June from May's 68, the data showed.

Asia's fourth-largest economy barely averted a recession in the first quarter, helped by the government's unprecedented stimulus measures and record rate cuts.

The survey follows a similar poll by a business lobby group, the Federation of Korean Industries, whose business outlook for June hit a 16-month high.

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The central bank poll was based on responses from a total of 2,193 firms.

Manufacturing accounts for about a third of South Korea's economic output and its performance has far-reaching effects on employment and incomes.