Manufacturers' operating ratio falls to lowest level in 11 yrs

SEOUL, Feb. 1 (Yonhap) -- The facility operation ratio of South Korean
manufacturers dropped to its lowest level in 11 years last year amid an overall
economic slump, data showed Monday.

According to the data provided by Statistics Korea and the finance ministry, the
facility operating ratio for local manufacturers fell to 74.1 percent last year,
down 3.1 percentage points from a year earlier.
The 2009 figure marks the lowest level since the corresponding ratio plunged to
67.8 percent in 1998, as the nation was still in the middle of the Asian
financial crisis.
The ratio managed a rebound from the 1998 trough in 2000 when it rose to 78.1
percent. While it dropped to 74.9 percent the following year, it has remained in
the upper 70 to lower 80 percent range until recent years, the data showed.
Following the financial crisis and the global economic slowdown in late 2008,
factories trimmed operation for fear of gloomy business outlooks. The ratio
plunged to 69.3 percent in the fourth quarter of 2008 and further dropped to 65.8
percent in the first quarter of last year.
Operation, however, improved in the second quarter when it rose to 73.7 percent
before increasing to 78.9 percent and 78.2 percent in the following two quarters
of last year, the data showed.
"Until the first half of last year, manufacturers suffered a very difficult time
but things are showing signs of steadily improving," a ministry official said.
"Driven by full-swing consumption and export recovery, the factory operating
ratio will likely average in the 70 percent range this year."
kokobj@yna.co.kr
(END)

Delete & Prev | Delete & Next