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Business sentiment for March remains pessimistic over weak consumption, external risks

Published: 20 Feb. 2025, 09:47 Updated: 20 Feb. 2025, 16:39

Shipping containers at a port in Busan [YONHAP]

Korea's business sentiment remains pessimistic for March, a poll showed Thursday, amid sluggish consumer spending and growing uncertainty abroad.

The business survey index (BSI) of the country's top 600 companies by sales stood at 90.8 for next month, according to the monthly poll by the Federation of Korean Industries (FKI).

A reading below 100 means pessimists outnumber optimists, while a figure above the benchmark means the opposite. The index has remained below 100 for 36 consecutive months since April 2022.

For the first quarter, the BSI was recorded at 87.5, marking the lowest level since the first quarter of 2009, when the figure stood at 65.7 in the aftermath of the global financial crisis.

The BSI for the manufacturing sector came to 95.1 for March, while the index for nonmanufacturing was recorded at 86.3.

Among manufacturing industries, only the machinery and tech sectors showed positive outlooks. Negative sentiment was prevalent in the automobile and transportation equipment sectors, which are expected to be affected by U.S. tariffs under President Donald Trump's administration.

Most nonmanufacturing sectors, including telecoms and construction, were also projected to experience downturns in the month.

"With prolonged sluggishness in consumption and investment, the economy faces a double whammy involving domestic demand and exports due to uncertainty regarding inflation and heightened external risks," a FKI official said.

Yonhap