South Korean manufacturers are expected to spend more on capital investment this year than they did last year, although those expenditures will be conservative and mostly geared towards maintaining facilities than expansion, a central bank survey showed on Monday. The Bank of Korea (BOK) said a snap survey of 271 manufacturers nationwide showed 66.7 percent of respondents were planning to expand facilities investment this year versus the 33.9 percent who said their investments would decline in 2017.
The survey was part of a quarterly central bank report on the regional economy. On an annual basis, capex declined for three consecutive quarters in 2016 as companies balked at boosting investment in the face of global and local uncertainties. In the fourth quarter, capital investment managed a 1.5 percent gain over a year earlier. Revised fourth-quarter gross domestic product growth data will be announced on Tuesday.