A poll conducted by the Federation of Korean Industries (FKI) revealed on Wednesday that business sentiment in South Korea had dropped in November due to worries that the Israel-Hamas conflict in the Middle East could lead to higher inflation and production costs.
The survey index (BSI) for 364 of the nation’s top 600 companies based on sales was 90.1 for the upcoming month, a decrease of 0.5 points from the previous month. A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 reveals the opposite.
The BSI for the manufacturing sector was 89.1 in November, and the index for the non-manufacturing sector stood at 91.1. This marks the 20th consecutive month of decline for the manufacturing index, and the fourth consecutive month of decline for the non-manufacturing index.
The FKI, which represents the interests of South Korea’s family-run conglomerates, attributed the weak November results to apprehensions that the tensions in the Middle East would cause an increase in oil prices and the continued economic struggles of local businesses.
This file photo shows the building entrance of the Federation of Korean Industries in Seoul. (Yonhap)
odissy@yna.co.kr
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