Biz sentiment dips to lowest in over a decade in August: survey
  • 5 years ago
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Business sentriment in Korea has fallen to its lowest point in more than a decade.
The prolonged U.S.-China trade war and Japan's export restrictions are being cited as reasons for the pessimism.
Kim Da-mi has the details.
Local firms in South Korea have a grim outlook for the nation's economy in August.
That's according to the Korea Economic Research Institute's survey released on Tuesday.
The business survey index of the country's top six-hundred companies by sales came to just 80-point-7 for next month.
That's sharply down from 92-point-3 the month before.
It is also the lowest forecast since the aftermath of the global financial crisis in 2009.
For the past 15 months in a row, the business index has stayed below one hundred, meaning there are more pessimists than optimists on the local economy.
The index for the manufacturing sector was especially low at around 75.
The institute pointed to weak domestic demand amid the economic slowdown and the prolonged U.S.-China trade war.
Japan's latest export curbs were another reason for the pessimistic outlook.
The institute noted that the Seoul-Tokyo trade dispute has created uncertainties in the local economy...and local firms are worried that the trade dispute may lead to lower production.
It also pointed to seasonal reasons such as the summer holidays.
However, highlighting that the sentiment was much lower than the previous months,...the institute says that the government needs to come up with policies to encourage companies to invest while responding to internal and external risks.
KIM Da-mi, Arirang News.
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