South Korean manufacturers expect weak business conditions to continue in Q4

South Korean manufacturers expect business conditions to remain weak in the fourth quarter.

The Korea Institute for Industrial Economics and Trade surveyed 1,500 manufacturers and found an overall business outlook index of 97, unchanged from the previous quarter.

A score below 100 means more firms expect conditions to worsen than improve.

Expectations for sales, exports and equipment investment edged down, while outlooks for inventory and operating profit rose slightly.

Large manufacturers were more optimistic than smaller firms: the outlook was 104 for large firms and 95 for small and medium-sized firms.

Firms most often cited rising raw-material costs, weak domestic demand and persistent uncertainty overseas as problems.

The survey gives a snapshot of expectations; it does not say what will happen to manufacturing conditions next.