Business Survey Index
Korea’s corporate sentiment on economic conditions for the fourth quarter (Q4) went up 10 points to 106 compared to the same period of last year, according to the survey of the IBK Economic Research Institute targeting on 3,070 small and mid-sized manufactures released on October 8.
The nation’s Business Survey Index (BSI) for Q4 climbed due to signals of economic recovery in advanced nations including the US along with year-end seasonal effects.
The figures of orders (106) and domestic sales (105) increased 10 points each, reflecting a higher expectation of upward economic outlook.
However, the BSI figure for profitability still hovered below the baseline of 100, and the ratio of manufactures that plan to scale back investments in facilities also declined for two consecutive quarters, which all indicate much time is needed before overall business condition gains momentum.
The research institute said slower local sales, difficult bill collections and fierce competition were the biggest obstacles to manufacturers’ businesses, adding it is still uncertain whether their management conditions actually improve in Q4 when considering weaker profitability and sluggish investment.