S. Korean biz confidence worsens for October

SEOUL, Sept. 28 (Yonhap) -- South Korean business confidence deteriorated for October from a month earlier as local companies expect the fallout from U.S. financial instability to continue to grip the export-driven economy, a poll showed Sunday.

According to the poll of 522 major companies by the Federation of Korean
Industries (FKI), the business survey index for October stood at 84.9, down
sharply from 98.3 for September.
A reading below 100 means pessimists outnumber optimists.
The FKI, the lobby for South Korea's family-controlled conglomerates, said the
bulk of the surveyed companies expected their business conditions to worsen in
October as the U.S. financial rout is likely to atrophy domestic consumer
spending and corporate investments.
According to the findings, the subindex for the manufacturing sector was 85.8 for
October, with the figure for the non-manufacturing sector reaching 83.6.
In a separate report, the federation said the business conditions of the
construction, petrochemical, distribution and other domestic-oriented industries
will be worse in the fourth quarter than a year earlier.
However, the car, tire, electronics, textile and other export industries are
likely to see about the same business conditions in the October-December period
as those a year earlier, the lobby said.
Despite global financial uncertainty, exports of automobiles are expected to rise
4.4 percent from a year ago in the fourth quarter, with domestic sales forecast
to increase 2.2 percent.
Overseas shipments of electronics are forecast to grow 7.3 percent on-year, and
exports of ships are predicted to surge 78.8 percent, the FKI said.
(END)

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