BSI Rises by 13.8 Points to 77.8 Compared to Q1 Performance
Semiconductor and Automobile Indices Rise... Companies with Fewer Than 10 Employees Remain at 59.2
Companies based in Pyeongtaek, Gyeonggi Province, expect the economy to recover somewhat in the second quarter.
The Pyeongtaek Industry Promotion Agency announced on April 18 that, according to the results of its Business Survey Index (BSI) survey of 400 local manufacturing companies, the comprehensive economic outlook index for the second quarter rose by 13.8 points to 77.8, compared to the first quarter performance index of 64.0.
The Business Survey Index is based on 100; a reading above 100 indicates economic improvement, while a reading below 100 indicates deterioration.
Looking at the second quarter outlook index by major indicators: domestic sales stood at 78.3, exports at 93.7, investment execution at 89.8, employment demand at 98.5, financial conditions at 73.3, and profitability at 75.8, all falling below the benchmark of 100. However, the outlook for the second quarter improved slightly across all indicators compared to the first quarter’s performance, suggesting a growing sentiment of economic recovery.
By industry, sectors considered strategic for the city showed relatively high indices: automobiles at 93.2, hydrogen at 88.5, and semiconductors at 85.0. In the semiconductor industry, the index jumped by 20.0 points compared to the first quarter, driven by rising DRAM prices due to a recovery in smartphone and PC demand, and the export outlook recovered to the benchmark of 100.0. The automobile industry also saw increases in both domestic sales and exports.
By company size, the outlook index for companies with 50 or more employees exceeded 100, drawing attention, while small businesses with fewer than 10 employees recorded only 59.2, highlighting a polarization in business sentiment according to company size.
Meanwhile, companies cited sluggish domestic demand, U.S. tariff policies, and difficulties in securing raw materials as major risks for the second quarter. They responded that expanding exports, strengthening policy support, and revitalizing the domestic market are necessary for economic recovery.
Lee Hakjoo, head of the Pyeongtaek Industry Promotion Agency, stated, "Although business sentiment across the manufacturing sector remains challenging, the slight increase in the second quarter outlook index reflects rising expectations for recovery. Based on the survey results, we will continue to devise effective policy support and strategic response measures to boost the vitality of the local industry and enhance business stability."
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