Manufacturing outlook for July remains negative: FKI poll

South Korean manufacturers have a negative outlook for the economy next month, a poll showed Wednesday.

According to a survey conducted by the Federation of Korean Industries (FKI) of the country’s top 600 companies by sales, the business survey index (BSI) came to 95.5 for July.

A reading above 100 indicates that optimists outnumber pessimists and vice versa for above 100.

The BSI for manufacturing came to 89.8, the 16th consecutive month below the benchmark since April last year.

Among the manufacturing sector, only food, beverages, and tobacco had a positive outlook with 110.5. Others were expected to be down for July, including textiles and apparel (57.1), metals (79.3), pharmaceuticals (83.3), base metals (84.6), wood, furniture and paper (88.9), oil refining and chemicals (93.1), vehicles and transportation equipment (94.4), and general and precision machinery and equipment (95).

The BSI for electronic and communication equipment, which includes semiconductors (95.2), has been below the benchmark for 10 consecutive months since October last year.

The BSI for non-manufacturing, on the other hand, rebounded to 101.6, led by sectors looking forward to more demand in the summer vacation season. It is the first time in 14 months that non-manufacturing has seen a positive outlook since May last year when the tally was 102.

Among non-manufacturing industries, the BSI for leisure, accommodation, and food services, which is in the peak summer vacation season, was the highest at 128.6. The information and communications (105.6) and transportation and warehousing (104) sectors also showed a favorable outlook.

Utilities, wholesale, and retail sectors were just above the baseline, with only construction (93.5) below.