May Small Business Sentiment Index at 88.3... "Up 14.5p from Previous Month"

Increased Consumption Through Emergency Disaster Relief Funds and Gift Certificates
Positive Impact on Small Business Owners and Traditional Market Sentiment

Source: Small Enterprise and Market Service

[Asia Economy Reporter Kim Daeseop] The Small Enterprise and Market Service announced on the 1st that the Small Business Sentiment Index for May this year was 88.3, showing an increase of 14.5 points compared to the previous month.

This survey was conducted from April 18 to 22 on 2,400 small business operators and 1,300 traditional markets, commissioned by the Ministry of SMEs and Startups, as part of the May Small Business Market Trend Survey. The Traditional Market Sentiment Index was 109.2, up 29.2 points from the previous month.

By industry, small businesses showed increases across all sectors compared to the previous month, with the restaurant industry (77.0→98.5, +21.5 points), specialized technical services (58.5→79.9, +21.3 points), and personal services (76.5→94.0, +17.4 points) leading. In traditional markets, all sectors also rose compared to the previous month, with clothing and footwear (78.6→122.1, +43.5 points), livestock products (81.3→122.5, +41.2 points), and seafood (78.0→111.7, +33.7 points) ranking highest.

Regionally, small businesses saw increases in all areas compared to the previous month, with Jeju (62.3→87.0, +24.7 points), Jeonnam (73.6→96.7, +23.2 points), and Seoul (71.3→88.4, +17.1 points) leading. In traditional markets, all regions also rose, with Daejeon (80.8→125.6, +44.9 points), Gyeonggi (83.3→128.1, +44.7 points), and Gyeongbuk (77.0→114.5, +37.5 points) ranking highest.

By category, small businesses showed increases compared to the previous month in sales (73.4→88.5, +15.0 points), financial conditions (73.2→87.0, +13.8 points), and employment (96.5→99.5, +2.9 points). However, inventory, which is a reverse indicator, increased by +4.4 points (98.1→102.4), indicating deterioration.

In traditional markets, sales (79.5→109.1, +29.6 points), financial conditions (78.7→108.5, +29.8 points), and employment (98.7→100.0, +1.3 points) rose compared to the previous month, while inventory (107.8→101.8, -6.0 points) declined.

For this business trend survey, a sentiment index above 100 indicates economic improvement, while below 100 indicates deterioration. For the inventory item, which is a reverse indicator, 100 or below indicates improvement, and above 100 indicates deterioration.

Kim Gwanho, head of the Research and Analysis Office at the Small Enterprise and Market Service, said, "This survey suggests that the increase in consumer spending due to emergency disaster relief funds and gift certificates supported by the government and local governments has positively influenced the sentiment of small businesses and traditional markets."

This content was produced with the assistance of AI translation services.