ID :
191437
Tue, 06/28/2011 - 05:51
Auther :
Shortlink :
https://oananews.org//node/191437
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S. Korea's business sentiment dips for July
South Korea's business sentiment for July dipped from a month ago due to growing economic uncertainties sparked by the Greek debt crisis and rising interest rates, a poll showed Tuesday.
The monthly business survey index (BSI) for the upcoming month came in at 101.3, down slightly from 104.3 forecast for June, according to the survey by the Federation of Korean Industries (FKI), the lobbying group of the country's large businesses.
A BSI reading above 100 means optimists outnumber pessimists. The poll was conducted on 558 of the country's 600 largest businesses.
Although the overall figure remained in positive territory, the figure for manufacturers stood at 98.7, the first time since February that the reading fell below the benchmark 100.
"Except for June when the index stayed unchanged from the month before, there have been constant fluctuations in the BSI readings because of various economic uncertainties," the FKI said.
The swings have been triggered by unfavorable developments in Greece, the U.S. economic slowdown, rising interest rates at home and growing household debts, it said.
"Local companies are keeping close tabs on Greece because it could spill over into the rest of Europe, which accounted for 11.5 percent of South Korea's exports last year," the FKI said. "They are also closely watching interest rates that can raise their financial costs."
According to the findings, the BSI reading for electronics and communications companies reached 108.6 for next month, with medical equipment, general machinery and electricity sectors hitting 103.2.
The reading for food and beverages, and furniture and pulp reached 114.7 and 105.9, respectively, although numbers for metal manufacturing and petrochemical products all fell below the 100 mark.
The country's large businesses believe their exports will continue to do well in the upcoming month with the BSI reading hitting 106 for the coming month.
The business sentiment for investment, inventory and profitability stayed in positive territory with outlook for hiring dipping to 99.8 for the cited month.
The FKI, meanwhile, predicted that BSI numbers will probably continue to go up and down for the rest of the year due to lingering uncertainties at home and abroad.
The monthly business survey index (BSI) for the upcoming month came in at 101.3, down slightly from 104.3 forecast for June, according to the survey by the Federation of Korean Industries (FKI), the lobbying group of the country's large businesses.
A BSI reading above 100 means optimists outnumber pessimists. The poll was conducted on 558 of the country's 600 largest businesses.
Although the overall figure remained in positive territory, the figure for manufacturers stood at 98.7, the first time since February that the reading fell below the benchmark 100.
"Except for June when the index stayed unchanged from the month before, there have been constant fluctuations in the BSI readings because of various economic uncertainties," the FKI said.
The swings have been triggered by unfavorable developments in Greece, the U.S. economic slowdown, rising interest rates at home and growing household debts, it said.
"Local companies are keeping close tabs on Greece because it could spill over into the rest of Europe, which accounted for 11.5 percent of South Korea's exports last year," the FKI said. "They are also closely watching interest rates that can raise their financial costs."
According to the findings, the BSI reading for electronics and communications companies reached 108.6 for next month, with medical equipment, general machinery and electricity sectors hitting 103.2.
The reading for food and beverages, and furniture and pulp reached 114.7 and 105.9, respectively, although numbers for metal manufacturing and petrochemical products all fell below the 100 mark.
The country's large businesses believe their exports will continue to do well in the upcoming month with the BSI reading hitting 106 for the coming month.
The business sentiment for investment, inventory and profitability stayed in positive territory with outlook for hiring dipping to 99.8 for the cited month.
The FKI, meanwhile, predicted that BSI numbers will probably continue to go up and down for the rest of the year due to lingering uncertainties at home and abroad.
