South Korean business sentiment eased for the second consecutive month thanks to robust chip exports and consumer spending spurred by government relief program, but uneasiness persisted due to trade uncertainties related to the United States.
The Composite Business Survey Index (CBSI) rose 0.6 points to 91.6 from the previous month, sustaining upward movement for the second straight month, according to the Bank of Korea data released Tuesday.
In the CBSI, derived from key indices in manufacturing and non-manufacturing, a reading below 100 means companies pessimistic about business conditions outnumber optimists, while a figure above the benchmark, the opposite.
Manufacturing BSI edged up by 0.1 points to 93.4, led by production and new orders, while non-manufacturing CBSI gained 1.1 points to 90.5 due to improved profitability.
The Korean Inc. however remains wary about business outlook as delay in a trade deal with the United States that translates into higher tariffs and barriers. The CBSI for the following month fell to 88.5. Manufacturing and non-manufacturing BSI are projected to fall to 89.4 and 87.9, respectively.
Lee Hye-young, head of the Bank of Korea's Economic Sentiment Survey Team, attributed the gloom to U.S. tariff negotiations and fewer business days due to the long Chuseok holiday.
Within manufacturing, electronics and telecommunications equipment improved due to strong semiconductor exports and new wireless device launches. However, chemicals and automotive parts struggled due to oversupply from China and weakened competitiveness.
Non-manufacturing sectors like retail and scientific services showed improvement, with retail benefiting from Chuseok demand and consumer coupons. The Economic Sentiment Index (ESI), which combines CBSI and consumer sentiment, fell 3.3 points to 91.3, though the seasonally adjusted ESI rose 0.6 points to 92.3.
The survey was conducted from Sept. 11 to 18, involving 3,524 companies, with responses from 3,298 - 1,843 in manufacturing and 1,455 in non-manufacturing.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
Copyright ⓒ Aju Press All rights reserved.
