South Korean manufacturers’ business confidence inched up for April from March on gradual economic improvements, but pessimists still outnumbered optimists, the central bank said Wednesday.

The index of manufacturers’ outlook on business conditions reached 85 for April, up from 84 in March, according to a monthly survey by the Bank of Korea. The index measures manufacturers’ expectations for the coming month.

April marks the third month in a row that the figure has moved up and the highest figure since October last year when it hit 86.

A reading below the benchmark 100 indicates more pessimists than optimists. The index is based on a nationwide poll of 2,496 companies.

“The gain in April compared to March was brought on by expected improvements in business conditions by small and medium enterprises and manufacturers that generally sell products on the domestic market,” the BOK said.

For April, companies expected modest improvements in sales, exports, domestic demand and plant operating rates, although concerns were raised in regards to securing raw materials, a decline in product prices, and potential liquidity shortfalls and availability of eligible workers.

The marginal gain in manufacturing confidence comes after the BOK held the key interest rate steady at 3.25 percent in March as it maintained a wait-and-see stance to properly assess risks to inflation and growth. 

(Yonhap News)