South Korea’s manufacturing business sentiment improved for the fourth quarter, driven by robust exports of semiconductors and cosmetics, though the overall outlook remained pessimistic, a survey showed Sunday.
The business survey index for 2,413 manufacturers nationwide stood at 86 for the October-December period, up 6 points from the previous quarter, according to the Korea Chamber of Commerce and Industry.
The increase marked a second consecutive quarterly improvement in manufacturers’ business sentiment.
A reading above 100 indicates more companies expect conditions to improve than worsen compared with the previous month, while a reading below 100 signals the reverse
The semiconductor industry posted a reading of 139, the highest since the survey began and its fourth consecutive quarter above the 100 benchmark.
The cosmetics sector climbed 20 points to 120, while medical and precision equipment rose 28 points to 108.
Despite improved business sentiment, 60.4 percent of manufacturers said they expect this year’s operating profit to fall short of their initial targets, citing continued cost pressures from high raw material and energy costs.
sahn@heraldcorp.com