Slight Recovery in Manufacturing Industry in Q4... Machinery and Materials Up

Korea Institute for Industrial Economics and Trade Announces 'Business Survey Index'
No Industry Expects Improvement Compared to Previous Quarter

[Asia Economy Reporter Moon Chaeseok] The manufacturing industry is expected to recover in the fourth quarter compared to the third quarter this year. Machinery and materials are anticipated to rebound. However, there was not a single sector expected to 'improve' compared to the previous quarter.

On the 11th, the Korea Institute for Industrial Economics and Trade announced that the Business Survey Index (BSI) for the fourth quarter was recorded at 88 for business conditions and 89 for sales, based on a survey conducted from the 10th to the 23rd of last month targeting 1,033 domestic manufacturing companies.

Both business conditions and sales rose by 4 points compared to the BSI forecast for the third quarter announced in July. Business conditions showed an upward trend for the first time this year, and sales increased after two quarters.

This index is based on 100, where a value closer to 200 indicates improvement compared to the previous quarter, and a value near 0 indicates deterioration.

Source: Korea Institute for Industrial Economics and Trade

Exports, domestic demand, facility investment, and employment also increased.

Exports jumped 8 points from 84 to 92. Both facility investment and employment rose by 1 point each, from 96 to 97.

Inventory decreased by 1 point from 100 to 99.

Source: Korea Institute for Industrial Economics and Trade

Looking at sales forecasts by type, machinery (90) and materials (88) increased, but Information and Communication Technology (ICT·87) and new industries (90) declined.

Both large enterprises (95) and small and medium enterprises (89) saw increases.

Source: Korea Institute for Industrial Economics and Trade

In detail, none of the 13 sectors recorded a score above 100.

Wireless communication devices had the highest score at 99, followed by home appliances and automobiles at 98. Automobiles rose by 30 points compared to the previous quarter.

However, semiconductors (83) fell by 14 points, and petroleum (80) dropped by 20 points.

The business conditions (84) and sales (84) for the third quarter, which indicate the current economic situation, both rose compared to the previous quarter (business conditions 69, sales 68).

Exports recorded 91, up 22 points.