S. Korea's manufacturing sentiment drops for Nov.

SEOUL, Oct. 29 (Yonhap) -- South Korean manufacturers' business confidence edged
down for November as exporters became less optimistic about overseas sales due to
the stronger local currency, the central bank said Thursday.

The business survey index (BSI) of manufacturers' outlooks dropped to 93 for
November from a two-year high of 94 the previous month, according to the Bank of
Korea (BOK). The fall put an end to the index's gaining streak that started in
February.
The index measures manufacturers' outlook on business conditions for the coming
month. A reading below 100 means pessimists outnumber optimists. The nationwide
survey of 2,284 companies was conducted Oct. 15-22.
The decline is attributable to exporters who are concerned that the rising local
currency may weigh down their overseas sales, a BOK official said.
"Coupled with an unfavorable exchange rate, tech firms like LCD and semiconductor
makers are likely to face off-seasons in November and December," the official
said, adding the index is still upbeat.
A stronger South Korean won, which has gained nearly 33 percent against the U.S.
dollar since March, is widely feared to drive up prices of Korean-made goods
overseas.
However, the BSI of manufacturers' business confidence for the current month
reached 92 in October, up from 90 the previous month and the highest since the
fourth quarter of 2004, it said.
The central bank's key index measuring local consumers' confidence reached the
highest level in over seven years in October, according to BOK data released
Tuesday. The consumer survey index reached 117, the highest level since the third
quarter of 2002.
The South Korean economy grew 2.9 percent in the third quarter from three months
earlier, posting a third consecutive quarterly expansion, bolstered by massive
economic stimulus measures.
Compared with a year earlier, the economy expanded 0.6 percent in the three
months, ending three quarters of on-year GDP declines, thanks to the nation's
resilient exports and local consumption.
On Oct. 9, the BOK froze the key interest rate at a record low of 2 percent for
the eighth straight month in a bid to support the fledgling economy.
pbr@yna.co.kr
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