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Biz confidence among Korean manufacturers worsens for first time in five months
Firms are also likely to be less optimistic next month.
Business sentiment among manufacturing firms in South Korea weakened last month on the back of lingering market uncertainties and sluggish demand, latest data from the Bank of Korea showed.
The central bank’s business survey index (BSI) on business conditions in the manufacturing sector slipped to 72 in July from 73 in June, reporting the first decline in five months or since the three-point dip in February.
A BSI above 100 indicates improving outlook among business leaders in the sector and anything below 100 signals deterioration.
Uncertain economic conditions was the top concern among manufacturers last month, followed by sluggish demand both locally and abroad, according to the survey.
Sentiment among the large manufacturers fell to 72 last month from 75 in June, compared to the one-point uptick in the BSI among small- and mid-size enterprises (72). Export companies have also raised their confidence in July by a tad (68), although they are still less optimistic than local companies (74).
Among the sectors, business confidence in the primary metals segment fell the sharpest with 14 points shaved off the subindex in July from the month prior, followed by electrical equipment and furniture which fell by 10 points each.
The outlook of business conditions for August is expected to fall further by three points to 69.
