S. Korean manufacturers’ outlook worsens for Nov.

October 29, 2018

SEOUL, Oct. 30 (Yonhap) — South Korean manufacturing companies have grimmer expectations for next month as escalating trade rows between the United States and China weigh heavily on their export-oriented production, a central bank poll showed Tuesday.

The business survey index (BSI) of manufacturers came to 72 for November, down sharply from 78 in the previous month, according to the Bank of Korea (BOK).

The index for chemicals manufacturing firms dived 13 points to 75, and sentiment of electronics and communications companies fell seven points to 81.

The metalworking sector’s sentiment reached 56 for next month, down 11 points from a month earlier, while the index for carmakers lost seven points to 68.

The BOK explained that the manufacturing industry is concerned that the lingering U.S.-China dispute will drag down global demand for chemicals and auto parts.

When respondents were asked about their current business conditions, the index dropped to a two-year low of 71 for November from 73 a month earlier.

A BSI reading below 100 means the number of companies forecasting worse business in the coming month is larger than the number expecting better times.

The latest BSI was based on a survey of 3,183 firms conducted from Oct. 12-19, the central bank said.