S. Korea's manufacturing sentiment edges down for Q3

South Korea's manufacturing sentiment inched down for the third quarter on jitters over economic uncertainties at home and abroad, marking the fifth consecutive quarterly drop, a poll showed Sunday.
According to the survey of 1,374 local manufacturers by the Korea Chamber of Commerce and Industry (KCCI), its business sentiment index slipped to 103 for the July-September period from 108 for the current quarter.
But the figure remains above the benchmark 100, which means optimists outnumber pessimists. The index has been on the decline after peaking at 128 in the second quarter of 2010, and it has been above 100 since the third quarter of 2009.
"Manufacturers are feeling the pinch of flaccid domestic demand, rising household debt and high inflation," the KCCI said. "Also weighing down on their sentiment are Europe's fiscal crisis, a slowing U.S. economy, China's monetary tightening and the aftermath of Japan's March earthquake."
The survey showed a widening gap in sentiment between conglomerates and smaller companies, and between exporters and domestic-focused businesses.
The third-quarter sentiment index for large companies was 126 for the third quarter, up from 119 for the second quarter, but that for small and medium enterprises dropped to 101 from 107.
The confidence index for exporting companies rose to 115 from 108 while the figure for domestic-oriented firms fell to 100 from 108.