Experts: "Manufacturing Sector Expected to Improve in October"... Driven by Domestic Demand and Product Price Increases

There is an outlook that the manufacturing sector in October will improve overall, supported by rising domestic demand and product prices, despite ongoing uncertainty surrounding U.S. tariffs.

The Korea Institute for Industrial Economics and Trade announced on the 21st that, according to a survey of 122 industry experts conducted from September 8 to 12, the Professional Survey Index (PSI) for the manufacturing sector outlook in October stood at 102, exceeding the baseline. The PSI ranges from 0 to 200, with 100 indicating no change from the previous month; the closer the score is to 200, the more positive the outlook. Conversely, a score closer to 0 indicates a more negative outlook.

Although the October outlook PSI fell by 3 points from the previous month (105), it remained above the baseline for the fourth consecutive month. Investment (101→104), profitability (99→102), and product prices (109→113) all improved compared to the previous month, exceeding the baseline. Domestic demand (104→102), production levels (105→101), and inventory levels (114→110) declined from the previous month but still surpassed the baseline. Exports (98→98) remained below the baseline for the seventh consecutive month, affected by U.S. tariff policies.

Looking at the outlook by specific sectors, semiconductors (132), bio-health (127), and textiles (115) were expected to improve. Displays, mobile phones, chemicals, and steel each recorded 100, suggesting conditions will remain unchanged from the previous month. Shipbuilding (80), automobiles (81), and both home appliances and machinery (each 89) were expected to deteriorate.

The manufacturing sector’s current conditions index for September was 107, up 5 points from the previous month, marking the third consecutive month above the baseline and indicating a positive outlook. Domestic demand (99→106), exports (93→103), and production levels (99→105) all surpassed the baseline again. Inventory levels (115→113), investment (100→102), profitability (101→105), and product prices (107→108) also all exceeded the baseline.

Yonhap News Agency