South Korean manufacturers’ business confidence for March rose to the highest level in eight months on a seasonal factor and hopes for the new government’s economic stimulus, the central bank said Thursday.

The index gauging manufacturers’ outlook on business conditions came in at 76 for March, up from 72 recorded for February, according to a monthly survey by the Bank of Korea. The index measures manufacturers’ expectations for the coming month.

It marked the highest level since the index hit 81 for July last year, it added.

A reading below the benchmark 100 means pessimists outnumber optimists. The index is based on a nationwide survey of 2,542 companies conducted from Feb. 14-21.

The index of manufacturers’ assessment of current business conditions came in at 71 in February, up from 70 recorded for January and the highest since August.

Manufacturers’ confidence tends to rise in March or April when factory operations increase, according to an official at the central bank.

Also, hopes run high that the new government is widely expected to unveil a set of economic stimulus packages as President Park Geun-hye has placed priority on the recovery of the economy.

Park took office on Monday, facing the task of bolstering the slowing economy and tackling heavy household debt.

In a separate survey by the country’s biggest business lobby, Korean business sentiment for March rose above the benchmark level for the first time 10 months as the government put its top policy priority on job creation.

More manufacturers picked sluggish domestic demand and economic uncertainty as major setbacks in doing business in the February survey. Currency volatility ranked third, underscoring concerns that a stronger won would hurt Seoul’s exports. (Yonhap News)