Manufacturing sentiment for Aug. hits 3-year low

Korean manufacturers’ business confidence for August fell to a more than 3-year low as the eurozone debt crisis and China’s slowing growth cooled sentiment, the central bank said Monday.

The index of manufacturers’ outlook on business conditions came in at 70 for August, down from the 81 recorded for July, according to a monthly survey by the Bank of Korea. The index measures manufacturers’ expectations for the coming month.

The August figures marked the lowest level since the index reached 69 for May 2009, the bank said. The data also marked the sharpest monthly decline since the index fell by 14 for December 2008.

A reading below the benchmark 100 means pessimists outnumber optimists. The index is based on a nationwide survey of 2,446 companies conducted from July 16 to 23.

“Manufacturers’ business sentiment sharply declined, hit by the eurozone risks and concerns about China’s slowing growth,” Kim Young-hun, head of the BOK’s corporate statistics team, told reporters.

“They are feeling pinched with similar intensity seen as in the 2008 global financial crisis.”

The index of manufacturers’ assessment of current business conditions came in at 71 in July, down from 82 tallied for June, the BOK added. (Yonhap News)