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Korean manufacturers’ sentiment hits 3-year high

South Korean manufacturers appear to believe business conditions for the second quarter of this year will be better than the first, according to a recent poll by the Korea Chamber of Commerce and Industry.

The improving sentiment seemed to be largely fanned by expectations of a recovery in the U.S. economy and an improvement in the auto and IT industries, and reached a three-year high on par with the first quarter of 2011.

According to the poll of 2,425 companies by the KCCI, the Business Survey Index for the April-June period was tallied at 111, up 19 points from 92 the previous quarter.

A reading of above 100 on the index, which gauges corporate expectations of economic conditions, means optimists outnumber pessimists.

The index reached 111 in the first quarter of 2011, but had fallen below this benchmark since the third quarter of 2011.

“Sentiment among local manufacturers improved sharply on anticipation of a recovery in the U.S. economy and improved business conditions in the auto and IT industries, as well as the government’s economic plans,” the KCCI said.