December SBHI at 76.5, Up 3.9 Points Year-on-Year
Manufacturing at 80.6, Non-Manufacturing at 74.7
Declines in Exports, Domestic Sales, Financial Conditions, and Operating Profit
The Small Business Health Index (SBHI) for December fell by 1.0 points compared to the previous month. Both the manufacturing and non-manufacturing sectors declined, dragging down the overall index.
According to the “December 2025 Small Business Economic Outlook Survey” released by the Korea Federation of SMEs on the 27th, the SBHI for December stood at 76.5, a decrease of 1.0 points from the previous month, but an increase of 3.9 points compared to the same month last year (72.6).
The simultaneous decline in both the manufacturing and non-manufacturing sectors had a significant impact. The December outlook for manufacturing and non-manufacturing was 80.6 and 74.7, respectively, down 2.4 points and 0.4 points from the previous month. During the same period, the construction sector rose by 3.2 points to 71.8, while the service sector fell by 1.2 points to 75.3.
In manufacturing, 10 industries, including ▲electronic components, computers, video, audio, and telecommunications equipment (up 6.7 points) and ▲other transportation equipment (up 5.6 points), saw an increase compared to the previous month. However, 13 industries, such as ▲industrial machinery and equipment repair (down 11.5 points) and ▲primary metals (down 8.0 points), recorded a decrease. In the non-manufacturing sector, construction rose by 3.2 points from the previous month, while the service sector fell by 1.2 points.
By category, exports, domestic sales, and financial conditions all declined compared to the previous month. Exports fell by 2.4 points from 84.6 to 82.2, while domestic sales dropped by 1.9 points from 78.5 to 76.6. Financial conditions and operating profit also decreased by 1.7 points and 1.2 points, respectively.
When compared to the average SBHI for each category in the same month over the past three years, exports and raw materials in manufacturing are expected to improve, but other categories are projected to worsen compared to the previous three-year average. In the non-manufacturing sector, all categories except for exports are expected to deteriorate compared to the previous three-year average.
The main management difficulties experienced by small businesses last month were “sluggish sales (product sales)” (59.1%), followed by “rising labor costs” (32.5%), “intensified competition among companies” (28.9%), and “rising raw material prices” (28.8%).
The average operating rate for small manufacturers in October was 70.3%, down 2.1 percentage points from the previous month and down 1.6 percentage points compared to the same month last year.
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