Korean manufacturers pessimistic about 2016 biz

A majority of South Korean manufacturing companies expect their business conditions to remain sluggish in 2016 from a year earlier amid weak global demand and faltering exports, a poll showed Wednesday.

According to the survey of 518 manufacturers conducted by the Korea Institute for Industrial Economics and Trade, the manufacturing sector business survey index stood at 93 for the whole of 2016, far lower than the median figure of 100.

A BSI reading below 100 means pessimists outnumber optimists.

The BSI readings for nearly all sectors remained below the 100 mark, with those for exports and investment reaching 99 and 98, respectively.

The number for the companies' financial conditions stood at 92.

By industry, shipbuilders, who struggled with massive losses last year, saw their BSI remain at 80 for the new year, while the machinery and steelmaking industries stood at 87 each.

For the first quarter of 2016, the BSI readings dropped to 91, down from the previous quarter's 97, according to the survey.

Their sales and exports outlook for the January-March period also remained pessimistic, with their BSI showing 91 and 93, respectively.

In particular, the automobile, steel and electronics industries also were in a negative mode for their first quarter sales, with all their readings staying below 90, according to the findings. (Yonhap)