Expert Perceived Manufacturing Business Index Improves After 7 Months

[Asia Economy Sejong=Reporter Kim Hyewon] Experts' perception of the manufacturing industry has improved for the first time in seven months. Experts expect this positive trend in business conditions to continue next month as well.

On the 24th, the Korea Institute for Industrial Economics and Trade conducted a survey of 176 experts across major industries and found that the Manufacturing Business Condition 'Professional Survey Index' (PSI) for April was 102. This is a double-digit increase compared to the previous month (87), marking the first time in seven months since last September that the PSI exceeded 100.

The PSI is based on 100 (indicating no change from the previous month); the closer the value is to 200, the more opinions indicate an improvement in business conditions compared to the previous month, while values closer to 0 indicate more opinions of deterioration.

Overall, domestic demand (99) fell short of the previous month, but exports (100) remained at the previous month's level. Production (104) and investment amount (102) both exceeded 100, although investment amount declined for the second consecutive month. Profitability (84) was below 100 but rebounded after three months.

By sector, the Information and Communication Technology (ICT) sector recorded 93, remaining below 100 for seven consecutive months since last October. The machinery sector also stayed below 100 at 99, continuing from the previous month, but the materials sector reached 111, surpassing 100 for the first time in six months. Compared to the previous month, both the machinery and materials sectors shifted to an upward trend after three months.

Specifically, display (73), electronics (98), machinery (85), and chemicals (95) were below 100, while most sectors such as semiconductors (104), automobiles (106), shipbuilding (104), steel (114), textiles (128), and bio-health (124) exceeded 100. Compared to the previous month, all machinery-related sectors including automobiles, as well as chemicals, textiles, semiconductors, and bio-health, showed improvement.

The PSI for business condition outlook in May was also surveyed at 103, indicating a prevailing positive expectation. Domestic demand (105) and exports (104) exceeded 100 for the first time in two months, and production (104) and investment amount (105) also rose above 100, increasing compared to the previous month. The ICT sector (98) and machinery sector (95) remain below 100, but the materials sector (113) is expected to surpass 100. Compared to the previous month, all sectors including ICT, machinery, and materials are projected to shift to an upward trend.

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