South Korea's Manufacturing Sector Outlook Remains Gloomy for Q1
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Seoul, Jan 12 (NationPress) The manufacturing industry of South Korea, which includes critical sectors like semiconductors and automotive, is anticipated to face a downturn in sales for the initial quarter as economic uncertainties escalate, as per data disclosed on Sunday.
The Business Survey Index (BSI) for the nation’s leading 1,500 manufacturing firms based on sales is recorded at 88 for the January-March timeframe, a decline from 95 during the fourth quarter of 2024, according to findings from the Korea Institute for Industrial Economics & Trade (KIET).
A score below 100 indicates that pessimists outnumber optimists, while a figure above the threshold suggests the contrary. This index has consistently remained under the benchmark since the third quarter of the previous year, as reported by Yonhap news agency.
The BSI readings for exports, capital investments, job creation, and financial conditions were all recorded below 100, at 91, 95, 96, and 85, respectively.
By sector, the BSI for the wireless communications sector saw a significant drop to 92 for the first quarter, down from 112 three months prior.
Similarly, the bio sector's corresponding figure fell to 98 from 103, and the secondary battery industry saw a decrease to 92 from 100 during the same period.
The semiconductor sector also experienced a reduction in its BSI to 88, down from 92, while the sales outlook for the automobile manufacturing sector declined to 92 from 94.
Other significant sectors reported negative sales forecasts for this quarter, with the BSI for shipbuilding, oil refining, and steel production standing at 95, 85, and 74, respectively.
In a separate analysis by the KIET, manufacturing companies indicated that sluggish domestic demand, global economic unpredictability, depreciation of the Korean won, and increasing production expenses are detrimental factors impacting their operations.
Over 40% of the firms expressed concerns regarding the impending trade policies of the incoming Donald Trump administration, fearing they may result in elevated inflation and interest rates domestically.
