ID :
21998
Tue, 09/30/2008 - 23:57
Auther :
Shortlink :
http://m.oananews.org//node/21998
The shortlink copeid
Korea`s manufacturing sentiment for October falls
SEOUL, Sept. 30 (Yonhap) -- South Korean manufacturers' confidence for October
edged down as companies expected a global economic downturn to hurt their
business, the central bank said Tuesday.
The business survey index (BSI) for manufacturers' expectations declined to 78
for October, compared with 79 the previous month, according to the Bank of Korea
(BOK). The business outlook index for September rebounded from that of August
when the index fell to its lowest level since it reached 73 for February 2005.
A reading below 100 means pessimists outnumber optimists. The nationwide survey
of 2,929 companies was conducted from Sept. 17-24.
"The October BSI for manufacturers fell mainly because companies expected
business uncertainty following global financial jitters to persist," Jang
Young-jae, a BOK official said. "They also had a gloomy outlook as a global
economic slowdown is feared to hurt exports."
In September, South Korea's stock and currency markets underwent fluctuations in
the wake of the collapse of Lehman Brothers Holdings Inc. The local currency
tumbled to a 57-month low against the U.S. dollar on Monday after dipping to
1,200 won at one point. The won has lost more than 21 percent versus the dollar
so far this year, putting upward pressure on already-high inflation.
The survey results come as South Korea is facing risks of persisting inflation
combined with slowing growth. The country's consumer prices jumped 5.6 percent
on-year in August, breaching the BOK's target range of 2.5-3.5 percent for the
ninth straight month.
The South Korean economy, Asia's fourth-largest, is losing steam on faltering
domestic demand. According to the BOK, the South Korean economy expanded 0.8
percent in the second quarter, as earlier estimated, but domestic demand in the
April-June period was more sluggish than an estimate made in July.
In August, the BOK raised its key interest rate by a quarter percentage point to
5.25 percent in an effort to control spiraling inflation, the first increase in a
year.
edged down as companies expected a global economic downturn to hurt their
business, the central bank said Tuesday.
The business survey index (BSI) for manufacturers' expectations declined to 78
for October, compared with 79 the previous month, according to the Bank of Korea
(BOK). The business outlook index for September rebounded from that of August
when the index fell to its lowest level since it reached 73 for February 2005.
A reading below 100 means pessimists outnumber optimists. The nationwide survey
of 2,929 companies was conducted from Sept. 17-24.
"The October BSI for manufacturers fell mainly because companies expected
business uncertainty following global financial jitters to persist," Jang
Young-jae, a BOK official said. "They also had a gloomy outlook as a global
economic slowdown is feared to hurt exports."
In September, South Korea's stock and currency markets underwent fluctuations in
the wake of the collapse of Lehman Brothers Holdings Inc. The local currency
tumbled to a 57-month low against the U.S. dollar on Monday after dipping to
1,200 won at one point. The won has lost more than 21 percent versus the dollar
so far this year, putting upward pressure on already-high inflation.
The survey results come as South Korea is facing risks of persisting inflation
combined with slowing growth. The country's consumer prices jumped 5.6 percent
on-year in August, breaching the BOK's target range of 2.5-3.5 percent for the
ninth straight month.
The South Korean economy, Asia's fourth-largest, is losing steam on faltering
domestic demand. According to the BOK, the South Korean economy expanded 0.8
percent in the second quarter, as earlier estimated, but domestic demand in the
April-June period was more sluggish than an estimate made in July.
In August, the BOK raised its key interest rate by a quarter percentage point to
5.25 percent in an effort to control spiraling inflation, the first increase in a
year.
