S. Korea's manufacturing sentiment for Oct. hits near 2-year low

SEOUL (Yonhap) - South Korean manufacturers' business confidence for October stayed at a near 2-year low as dimmer global economic outlooks increased uncertainty, the central bank said Wednesday.
The index of manufacturers' outlook on business conditions reached 86 for October, unchanged from the previous month, according to the Bank of Korea (BOK). The index measures manufacturers' expectations for the coming month.
The October outlook marked the lowest level since the index reached 85 for December 2009. A reading below 100 means pessimists outnumber optimists. The index is based on a nationwide survey of 2,516 companies conducted between Sept.14 and 21.
"Increased economic uncertainty and subsequent high market volatility dented manufacturers' sentiment for next month," said Lee Seong-ho, an official at the BOK.
An index measuring manufacturers' assessment of current business conditions came to 81 in September, up from 80 in August, the BOK said.
Local manufacturers gave economic uncertainty as their main difficulty in doing business, illustrating that the export-dependent economy is sensitive to external economic conditions.
A sub-index gauging exporters' business outlook for October remained unchanged at 80, while an index measuring domestic-focused firms' outlook reached 90, down from 91 for September, the BOK added.
Downside risks to South Korea's economic growth have escalated due to sputtering recoveries in advanced economies and contagion fears about the eurozone debt crisis.
Citing global economic risks, the International Monetary Fund lowered its outlook for Asia's fourth-largest economy to 4 percent from 4.5 percent, while increasing inflation projection to 4.5 percent from 4.3 percent.
The BOK's 2011 growth forecast stood at 4.3 percent.