S. Korea's manufacturing confidence falls to 4-month low

SEOUL, Nov. 26 (Yonhap) -- Business confidence among South Korean manufacturers
dropped to the lowest level in four months for December as a strengthening local
currency hurt exporters' economic outlooks, the central bank said Thursday.
The business survey index (BSI) measuring manufacturers' outlook for the coming
month fell to 85 for December from 93 the previous month, the Bank of Korea (BOK)
said in a statement. The December reading marks the lowest since 80 in August and
a sharp turnaround from October's two-year high of 94, the central bank said.
The central bank surveyed 1,475 local manufacturers on their outlooks on business
conditions from Nov. 13-20.
"The sharp fall came as large and exporting companies' outlook for sales and
profitability worsened due to the won's gains," said a BOK official.
The sub-index measuring big companies' confidence decreased to 87 from 97 a month
earlier, with the gauge for exporters coming in at 86, down from November's 95,
according to the central bank.
The South Korean won has gained 36.2 percent since hitting an 11-year low in
early March, raising fears the strengthened currency may lift the prices of
Korean-made goods overseas.
Meanwhile, the index that measured 801 non-manufacturers stayed unchanged at 84
for December from a month earlier, the central bank said.
The South Korean economy accelerated 2.9 percent in the third quarter from the
previous three months, the fastest growth in over seven years.
The central bank left its key interest rate unchanged at a record-low 2 percent
in November, the ninth monthly rate freeze in a row, citing economic
uncertainties.
pbr@yna.co.kr
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