South Korean manufacturers’ business outlook softens in December

In the Bank of Korea’s Business Survey Index report on Wednesday, a one-point dip was expected for next month for the manufacturing sector, lower than the previous month’s 72 points.

Skyline of Seoul, South Korea

Manufacturers in South Korea expect the business climate in the country to slow down in December due to weaker exports and softness in local consumer demand.

In the Bank of Korea’s Business Survey Index (BSI) report on Wednesday, a one-point dip was expected for next month for the manufacturing sector, lower than the previous month’s 72 points. November’s actual business conditions for the manufacturing sector was higher by 2 points from October, at 73 points.

On a seasonally-adjusted basis, the index was at 74 points for this month, up one-point from October.

This month’s improvement saw support from the shipbuilding sector, helped by an increase in ship orders. The BSI for shipbuilders rose 18 points over the month to 59 points in November.

A reading below 100 points indicates that businesses are pessimistic in their outlook, while the reverse reflects optimism. The latest BSI survey polled 3,017 firms from November 13 to November 20.

Non-manufacturers registered softer demand for this month, as the sector’s BSI fell 2 points to 74 points, due to slower sales in the information and communications, and the art and sports segments.

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