Bleak manufacturing outlook persists for Q4

The outlook for the manufacturing sector, particularly in the display, chemical, electronics and semiconductor industries, remains clouded by rising production costs, slowing demand and uncertainties in the supply chain.

According to the Business Survey Index (BSI) released by the Korea Institute for Industrial Economics and Trade on Tuesday, which surveyed 1,500 manufacturing firms, both the outlook for the fourth quarter of 2024 and sales projections have turned down from the previous quarter. The fourth-quarter outlook fell 4 points from the third quarter to 93, while the sales forecast also fell 3 points to 95 over the same period. A BSI above 100 indicates that more firms expect the economy to improve, while a reading below 100 indicates that more firms expect the economy to worsen.

By industry, most sectors reported revenue expectations below 100 for the fourth quarter except for wireless communication equipment (112), bio-health (103), and secondary batteries (100). For its part, the display sector saw a significant drop of 12 points from the previous quarter to 95.