South Korean manufacturers' business confidence for December declined to a near four-year low as the growth outlook remained bleak amid the global economic downturn, the central bank said Thursday.
The index of manufacturers' outlook on business conditions came in at 67 for December, down from 70 tallied for November, according to a monthly survey by the Bank of Korea (BOK). The index measures manufacturers' expectations for the coming month.
The December data marked the lowest reading since the index came in at 59 for April 2009, it added.
A reading below the benchmark 100 means pessimists outnumber optimists. The index is based on a nationwide survey of 2,520 companies conducted from Nov. 15-22.
The index of manufacturers' assessment of current business conditions came in at 67 in November, down from 68 recorded for October, the BOK added. It marked the lowest level since the index hit an identical 67 in April 2009.
The data came as the export-dependent Korean economy is losing steam amid the global economic slowdown.
The South Korean economy grew a mere 0.2 percent on-quarter in the third quarter, the slowest in nearly three years. The BOK cut the key rate in July and October and its growth forecast for 2012 and 2013.
The bank's 2012 and 2013 growth outlooks were lowered to 2.4 percent and 3.2 percent, respectively. The Organization for Economic Cooperation and Development on Tuesday revised down its 2012 outlook for Korea to 2.2 percent.
A separate poll by the Federation of Korean Industries showed that the business sentiment index for December hit a four-year low on concerns about the eurozone risks and the deadlock over a U.S. fiscal cliff.
Local manufacturers picked economic uncertainty, sluggish domestic demand and the local currency's ascent as their main business setbacks, according to the BOK.
The index gauging smaller firms' outlook on business conditions reached 62 for December, down from 68 for November. The index measuring domestic-focused companies' business prospects came in at
62 for next month, compared with 67 for November, it noted. (Yonhap News)
