Non-manufacturing business sentiment hits a three-year high: reading September CBSI alongside weaker manufacturing
The Bank of Korea’s September business survey was reported to show non-manufacturing sentiment at its highest level in three years. At the same time, manufacturing sentiment fell, and the all-industry index slipped slightly. The numbers should therefore be read not as a simple story of a stronger service sector, but as a mixed indicator shaped by holiday demand and manufacturing pressure.
Key summary
- The September non-manufacturing Composite Business Sentiment Index rose 2.2 points from the previous month to 98.9.
- That was reported as the highest level since 99.6 in September 2023.
- Manufacturing CBSI fell 4.3 points to 99.5, while all-industry CBSI dropped 0.5 point to 99.1.
- The key is whether the index crosses the 100 baseline and why each sector moved in a different direction.
What the numbers show
Non-manufacturing was helped by seasonal and consumption factors such as the Chuseok holiday and more outdoor activity. Manufacturing, by contrast, was explained as being weighed down by fewer working days, partial strikes in the auto industry, supply disruptions and external uncertainty. The core message is that service and manufacturing firms felt very different conditions in the same month.
Confirmed facts
- The Bank of Korea’s September survey put non-manufacturing CBSI at 98.9.
- Financing conditions and business conditions were cited as factors lifting the non-manufacturing index.
- Manufacturing CBSI was reported to have fallen below the 100 baseline for the first time in five months.
- CBSI is a sentiment indicator built from key items in business survey indexes, with 100 used as the line between optimistic and pessimistic readings.
How to read each indicator
| Indicator | Latest figure | Reading point |
|---|---|---|
| Non-manufacturing CBSI | 98.9, up 2.2p from the previous month | Service-side sentiment improved, but the index still did not exceed 100. |
| Manufacturing CBSI | 99.5, down 4.3p from the previous month | Inventory and new-order pressure appear to have weighed on manufacturers. |
| All-industry CBSI | 99.1, down 0.5p from the previous month | The headline index slipped because sector temperatures diverged. |
What to watch next
- Check whether non-manufacturing sentiment holds after the holiday effect fades in October.
- For manufacturing, watch export orders, auto-parts delivery disruptions and inventory pressure.
- A broader rebound in sentiment is easier to judge only if household consumption and employment data improve together.
Search keywords
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