June Manufacturing Outlook Rises for First Time in 3 Months... Semiconductor, Auto, Steel, Biohealth Up

Korea Institute for Industrial Economics and Trade, Industrial Economy Expert Survey: May Status and June Outlook

PSI Outlook by Detailed Manufacturing Industry Sector in Korea (June 2021)

[Sejong=Asia Economy Reporter Joo Sang-don] Experts forecast that the manufacturing industry conditions will improve in June. In particular, the improvement trend in semiconductors, automobiles, steel, and biohealth sectors is expected to be steep.

On the 23rd, the Korea Institute for Industrial Economics and Trade (KIET) announced the results of the May status and June outlook based on a survey of industrial economy experts.

KIET conducts a monthly expert survey targeting domestic major industries through FnGuide and Metrics, and publishes the 'Professional Survey Index (PSI)' quantified according to the Business Survey Index (BSI) formula for each item. The response results for each item are aggregated within a range of 0 to 200, where 100 (no change compared to the previous month) is the baseline; values closer to 200 indicate a majority opinion of increase (improvement) compared to the previous month, while values closer to 0 indicate a majority opinion of decrease (deterioration).

According to this survey, the June outlook shows an industry condition PSI of 133, rising from 124 in the previous month for the first time in three months. Domestic demand (125) and exports (134) turned upward unlike the previous month, and production (121) also increased from 112 in the previous month. Investment amount (124) also rose for the first time in three months.

By item, sectors such as semiconductors (181), steel (164), shipbuilding (148), and textiles (144) significantly exceeded 100. Compared to the previous month, most sectors except for display (-10), home appliances (-7), and chemicals (0) showed simultaneous upward trends. In particular, biohealth's June PSI outlook jumped 25 points from the previous month. Semiconductors (16), machinery (15), steel (14), automobiles (11), and mobile phones (10) also rose sharply.

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