S. Korean manufacturing sentiment sinks to 7-month low

South Korean manufacturers’ business sentiment sank to its lowest level in seven months in February, a poll showed Friday.

The business survey index for manufacturing companies came to 66 for February, down from 68 for January and the lowest since June, according to the Bank of Korea.

A reading below 100 means pessimists outnumber optimists. The monthly survey covers about 2,800 firms.

The BSI for nonmanufacturing companies fell 1 point from the previous month to 68 for February, also slipping to the lowest level since June.

The survey results indicates that more companies expect their domestic sales to shrink, industry watchers said.

Despite a slight improvement in recent months, private consumption is widely expected to remain in the doldrums. In the October-December period, consumer spending grew 1.5 percent on-quarter, quickening slightly from a 1.2 percent gain in the previous quarter.

Roughly one-quarter of both the manufacturers and non-manufacturing firms said the slump in the domestic market was the most serious problem they faced.

The central bank said the January BSI on the actual business performance of Korean manufacturers fell to the lowest level since March 2009.

(khnews@heraldcorp.com)