South Korean manufacturing outlook for November drops
Seoul, South Korea (4E) – The Bank of Korea (BOK) on Monday announced that South Korean manufacturers’ business confidence fell to its lowest level in November as growth prospects continue to be weak amid the global economic downturn.
In a statement, the central announced that the index that measures manufacturing expectations dropped in November to 70, down two notches from October. A separate index that measures sentiment among non-manufacturing companies stood at 67, which is the same level as October’s. A number below 100 means there are more pessimistic business owners than optimists.
The BOK also said that November’s manufacturing confidence level declined to its lowest level since the index hit a similar 70 mark in August.
South Korea’s gross domestic product (GDP) grew 1.6 per cent between July and September compared to the previous year, the slowest expansion since 2009.
The central bank also lowered its growth projection for the country this year to 2.4 per cent and next year to 3.2 per cent.
Economists feel that the Korean economy will still face headwinds in the coming months, but a rebound is likely in the first quarter of the coming year.
The survey polled 1,456 manufacturers and 1,066 non-manufacturers between Oct. 15 and Oct. 22.