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(LEAD) Biz sentiment remains subdued for Nov. amid high energy prices, supply disruptions: poll

All News 08:15 October 29, 2021

(ATTN: ADDS separate survey by KERI in last 7 paras, images)

SEOUL, Oct. 29 (Yonhap) -- South Korea's business sentiment remained subdued for November as concerns over higher oil prices and global supply disruptions offset optimism over a rebound in demand amid eased antivirus curbs, a central bank survey showed Friday.

The survey of 2,836 companies, conducted by the Bank of Korea, showed the country's business sentiment index (BSI) stood at 86 for November, unchanged from the previous month.

A reading below 100 means pessimists outnumber optimists. The index measures manufacturers' outlook on business conditions in the coming month.

The BSI for manufacturing companies decreased to 88 from 93 over the same period, with that for the non-manufacturing sector rising from 81 to 85, the poll showed.

The BOK said that the sentiment for non-manufacturing firms improved as eased social distancing rules could lead to more consumption but rising energy prices and the global supply bottleneck weighed on the sentiment for manufacturers.

South Korea plans to ease long-enforced restrictions on gatherings and business operations with its shift to the "living with COVID-19" scheme on Nov. 1 meant to gradually restore daily life back to pre-pandemic days.

(LEAD) Biz sentiment remains subdued for Nov. amid high energy prices, supply disruptions: poll - 1

A separate poll showed the country's business confidence inching down for November on soaring material and energy costs, as well as a slowdown in the Chinese economy.

The Korea Economic Research Institute (KERI) said in a statement that its business survey index of the country's top 600 companies by sales came to 100.6 for next month, down 2.6 points from October.

Although it worsened, it remained above par. A reading above 100 means companies expecting improvements in business conditions outnumber those that are pessimistic.

KERI, the research arm of the country's top business lobby, the Federation of Korean Industries, said the slight drop in business sentiment comes as local firms are burdened by a jump in oil and raw material prices.

Also responsible is the slumping Chinese economy, which is feared to weaken their exports to the country, South Korea's top export market.

The index for the manufacturing sector fell from 101 to 96.5 for November, with that for the non-manufacturing industry also dropping to 105.9 from 106.9.

KERI said the performance index for November stood at 98.3, remaining below the benchmark 100 for the fourth consecutive month.

The logo of the Korea Economic Research Institute (KERI) (Yonhap)

The logo of the Korea Economic Research Institute (KERI) (Yonhap)


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