[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] The manufacturing industry in the Gwangju-Jeonnam region in June showed a decline compared to the previous month.
On the 30th, the Gwangju-Jeonnam branch of the Bank of Korea announced that the June Gwangju-Jeonnam Manufacturing Business Survey Index (BSI) was 74, down 4 points from the previous month.
The BSI for next month's outlook also fell 7 points from the previous month to 74.
The Business Survey Index (BSI) is calculated by subtracting the percentage of companies responding that business conditions are bad from the percentage responding that conditions are good, then adding 100.
If the index is above the baseline (100), the number of positive responses exceeds the number of negative responses; if below, the opposite is true.
The manufacturing sales BSI and new orders BSI each dropped by 12 points, and the production BSI fell by 14 points, showing a significant decline.
The profitability BSI was 65, matching the lowest level since May 2020, which was the lowest since 2013.
This indicates that the index, which had somewhat improved after the outbreak of COVID-19, has declined again.
Management difficulties cited included rising raw material prices (45.4%), labor shortages and increased labor costs (13.6%), and sluggish domestic demand (8.9%).
The non-manufacturing business conditions BSI was 78, down 3 points from the previous month.
The survey was conducted from the 8th to the 22nd of this month, targeting 585 manufacturing and non-manufacturing companies with five or more employees in the region.
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