Manufacturing Business Survey Index Returns to Benchmark 107 for First Time in 3 Months

The domestic manufacturing business climate has recovered to the benchmark level for the first time in three months. According to the Korea Institute for Industrial Economics and Trade's (KIET) 'Industrial Economic Expert Survey' results on the 23rd, the August Manufacturing Business Survey Index (PSI) stood at 107, up 12 points from the previous month's 95. The survey was conducted from the 10th to the 14th of this month, polling 126 experts across 170 industries. PSI is an indicator that converts survey responses into a numerical value between 0 and 200; a figure above 100 indicates that opinions on business improvement are dominant, while a figure below 100 suggests that opinions on deterioration are prevalent.

Exports and production led the improvement in the manufacturing business climate in August. The Export PSI came in at 112, exceeding the benchmark for the fourth consecutive month, and the production level also surpassed the benchmark at 109. The Investment PSI also recorded 108, staying above the benchmark. However, the Domestic Market Sales PSI slightly missed the benchmark at 98, and profitability remained sluggish for the second straight month at 94.

The disparity between sectors was also distinct. Mobile phones surged 87 points from 56 the previous month to 143, and the electronics sector rose 53 points from 61 to 114. Bio and Health rose from 90 to 124, and Chemicals increased from 50 to 94. Semiconductors continued their high streak at 144. Conversely, Home Appliances fell from 71 to 57, Automobiles dropped from 100 to 89, and Steel, at 78, remained below the benchmark.

The September Business Outlook PSI was projected at 108, exceeding the benchmark and rising from the August actual figure of 95. Experts predicted that the production level would surpass the benchmark at 115 and profitability at 104.

A rebound was also forecasted for sluggish sectors. The Home Appliances Outlook PSI surged 43 points from 71 the previous month to 114, and Steel was shown to rise from 67 to 100. Semiconductors (150), Bio & Health (124), Textiles (107), and Machinery (106) are expected to exceed the benchmark. While Automobiles and Mobile Phones are expected to rise to 100 each, Displays (92) and Chemicals (94) are projected to remain below the benchmark.