S. Korea's business sentiment falls again in July: BOK
- 5 years ago
7월 기업 체감경기 1p 떨어진 73…중소•내수기업 낙폭 커
Warning bells ringing for the Korean economy.
According to the business sentiment index, companies were even more pessimistic this month.
And the index doesn't yet reflect the concerns brought up by Japan's trade restrictions.
Kim Da-mi reports.
South Korean companies' business sentiment for July fell slightly compared to the previous month.
According to the Bank of Korea on Tuesday, the business survey index for all industries recorded 73, down a single point on-month.
The figure for July is far below 100... meaning there are many more pessimists than optimists on the local economy.
By sector, electronics and communication rose four points to 83,...thanks to a bump in shipments of expensive smartphones and higher demand for IT parts,... mainly due to seasonal reasons.
However, the automobile sector plunged seven points to 68 due to falling exports and fewer working days.
The business survey index in the non-manufacturing sector for July was 72, down a couple of points from the previous month.
Construction slumped to 64...down two points from the previous month and science and technology plummeted 12 points to 75 because of seasonal reasons.
The central bank said Japan's export restrictions did not directly affect sentiment in July.
"If South Korea does get cut off from Japan's whitelist, that will affect local companies' business sentiment in the near future. For the manufacturing sector, for instance, materials will not be available which means no production, no sales, no profitability. The outlook is not bright in all aspects."
In addition, as the outlook for August also fell by two points to 74,... experts point to local firms' concerns over falling exports prompted by Tokyo's export curbs.
As sentiment is much lower than previous months,...experts say the government has to come up with policies to encourage companies to invest and respond more strongly to internal and external risks.
Kim Da-mi, Arirang News.
Warning bells ringing for the Korean economy.
According to the business sentiment index, companies were even more pessimistic this month.
And the index doesn't yet reflect the concerns brought up by Japan's trade restrictions.
Kim Da-mi reports.
South Korean companies' business sentiment for July fell slightly compared to the previous month.
According to the Bank of Korea on Tuesday, the business survey index for all industries recorded 73, down a single point on-month.
The figure for July is far below 100... meaning there are many more pessimists than optimists on the local economy.
By sector, electronics and communication rose four points to 83,...thanks to a bump in shipments of expensive smartphones and higher demand for IT parts,... mainly due to seasonal reasons.
However, the automobile sector plunged seven points to 68 due to falling exports and fewer working days.
The business survey index in the non-manufacturing sector for July was 72, down a couple of points from the previous month.
Construction slumped to 64...down two points from the previous month and science and technology plummeted 12 points to 75 because of seasonal reasons.
The central bank said Japan's export restrictions did not directly affect sentiment in July.
"If South Korea does get cut off from Japan's whitelist, that will affect local companies' business sentiment in the near future. For the manufacturing sector, for instance, materials will not be available which means no production, no sales, no profitability. The outlook is not bright in all aspects."
In addition, as the outlook for August also fell by two points to 74,... experts point to local firms' concerns over falling exports prompted by Tokyo's export curbs.
As sentiment is much lower than previous months,...experts say the government has to come up with policies to encourage companies to invest and respond more strongly to internal and external risks.
Kim Da-mi, Arirang News.