South korea: South Korea's business sentiment remains pessimistic for October amid prolonged external uncertainties, including U.S. tariff hikes, a poll showed Friday. The business survey index (BSI) of the country's top 600 companies by sales stood at 96.3 for next month, according to a monthly poll by the Federation of Korean Industries (FKI).
According to Yonhap News Agency, a reading below 100 means pessimists outnumber optimists, while a figure above the benchmark means the opposite. The index has now remained below 100 for 43 consecutive months since April 2022. The BSI for the manufacturing sector stood at 96.8, with that for the non-manufacturing sector coming to 95.8.
Within manufacturing, the electronics and communication devices industry posted an index of 115.8, followed by the automobiles and transportation equipment segment with 102.9. The oil refining and chemical industry, on the other hand, posted a reading of 93.5. "Despite the improved performance of export-oriented industries, such as semiconductors, automobiles and ships, the prolonged slump in the petrochemical and steel sectors led to a pessimistic outlook for related companies," the FKI said.
Among non-manufacturing industries, the construction sector posted an index of 82.2, with the leisure and accommodation segment recording 92.9. "Amid the challenging business environment, the contraction in the investment sentiment may become a significant burden on economic growth," Lee Sang-ho, head of FKI's economic research department, said. "It is important to make efforts to stabilize the external trade environment and carry out bold regulatory reforms to revitalize business sentiment."