Manufacturing CBSI Expected to Drop by 10.3 Points Next Month
Non-Manufacturing Sector Also Forecast to Decline by 5.0 Points
The business sentiment among companies in the Gwangju and Jeonnam regions is expected to deteriorate further due to sluggish domestic demand and an uncertain economic outlook.
On June 30, the Gwangju-Jeonnam branch of the Bank of Korea announced the results of its June 2025 business sentiment survey, which targeted 601 companies (264 in manufacturing and 276 in non-manufacturing sectors) located in Gwangju and Jeonnam. The manufacturing Business Sentiment Index (CBSI) stood at 81.6, dropping by 12.2 points from the previous month, while the outlook for the following month was 79.5, down by 10.3 points compared to the previous month.
In contrast, the national manufacturing CBSI was 94.4, a decrease of 0.3 points from the previous month, while the outlook for the following month was 93.4, an increase of 0.3 points from the previous month.
Similarly, the non-manufacturing CBSI in the region was 86.6, down by 6.7 points from the previous month, and the outlook for the following month was 88.1, a decrease of 5.0 points from the previous month. Nationally, the non-manufacturing CBSI was 87.4, down by 0.7 points from the previous month, and the outlook for the following month was 86.7, down by 0.4 points from the previous month.
The CBSI is a sentiment indicator calculated using the main indices (five for manufacturing, four for non-manufacturing) from the Business Survey Index (BSI). A value of 100 represents the long-term average; a value above 100 indicates optimism compared to the long-term average, while a value below 100 indicates pessimism.
For manufacturing companies in Gwangju and Jeonnam, factors contributing to the decline in the CBSI included product inventory (with a contribution of -4.1 points) and business conditions (with a contribution of -2.7 points). For non-manufacturing companies, financial conditions (contribution of -2.7 points) and business conditions (contribution of -1.7 points) were cited as factors for the decline.
Looking at the business conditions BSI for manufacturing, the actual performance for this month was 53, down by 12 points from the previous month, and the outlook for the following month was also 53, down by 10 points from the previous month. Production performance was 75, down by 6 points from the previous month, with the outlook for the following month at 73, down by 10 points. Sales performance was 72, down by 7 points from the previous month, and the outlook for the following month was 68, down by 5 points.
New order performance was 70, down by 11 points from the previous month, and the outlook for the following month was 66, down by 11 points. For non-manufacturing, the business conditions BSI for this month was 59, down by 5 points from the previous month, while the outlook for the following month remained unchanged at 66.
Sales performance was 65, down by 3 points from the previous month, and the outlook for the following month was 65, down by 4 points. The profitability BSI was 70, down by 4 points from the previous month, and the outlook for the following month was 70, down by 6 points.
The financial conditions BSI was 69, down by 7 points from the previous month, and the outlook for the following month was 70, down by 5 points.
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