The Average Operating Rate of Small and Medium Manufacturing Industries in November Rises by 0.3 Percentage Points Compared to the Previous Month
The Small and Medium Business Index (SBHI) for January next year dropped by 4.5 points compared to the previous month. This marks a decline for three consecutive months.
The Korea Federation of SMEs announced the results of the "January 2025 Small and Medium Business Outlook Survey" on the 26th. This survey was conducted from the 11th to the 18th, targeting 3,071 small and medium enterprises. An index above 100 indicates that more companies have a positive outlook on the economy than those who do not, while an index below 100 indicates the opposite.
The business outlook index for January was 68.1, down 4.5 points from the previous month. Compared to the same month last year (77.5), it fell by 9.4 points. The manufacturing sector's January outlook dropped 5.3 points from the previous month to 74.0, while the non-manufacturing sector declined by 4.2 points to 65.5.
In manufacturing, three industries, centered on other transportation equipment and beverages, rose compared to the previous month, but 20 industries, including chemicals and chemical products, declined. In non-manufacturing, construction fell by 5.4 points from the previous month, and the service sector dropped by 3.9 points.
Looking at the outlook by category across all industries, exports (81.8→85.4) rose compared to the previous month, while domestic sales (71.4→67.4), operating profit (71.0→68.2), and financial conditions (72.4→70.5) declined. Employment (94.5→95.4), which follows a reverse trend, is expected to worsen compared to the previous month.
Comparing the SBHI for January 2025 with the average SBHI for the same month over the past three years, raw materials and facilities, which follow a reverse trend, are expected to improve in manufacturing. Other categories are expected to worsen compared to the previous three-year average. In non-manufacturing, exports and employment, which follows a reverse trend, are expected to improve, but other categories are expected to deteriorate compared to the past three-year average.
The main management difficulties for SMEs in December were poor sales (product sales) at 46.0%, followed by rising labor costs (36.4%), rising raw material prices (28.2%), and intensified competition among companies (24.3%).
The average operating rate of small and medium manufacturing enterprises in November 2024 was 72.2%, up 0.3 percentage points from the previous month but down 0.7 percentage points compared to the same month last year.
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