August SME Business Outlook Index 76.6... Down 1.4 Points from Previous Month

The Small and Medium Business Economic Outlook Index (SBHI) fell by 1.4 points compared to the previous month. After a slight increase in June, it showed a downward trend for two consecutive months.

The Korea Federation of SMEs announced the results of the "August 2024 Small and Medium Business Economic Outlook Survey" on the 30th. This survey was conducted from July 15 to 22, targeting 3,061 small and medium enterprises.

The economic outlook index for August was 76.6, down 1.4 points from the previous month. This marks a decline for two consecutive months following a slight rise in June, and a 3.1-point decrease compared to the same month last year. An index above 100 means that more companies have a positive economic outlook than those who do not, while an index below 100 indicates the opposite.

The manufacturing sector's economic outlook for August was 80.4, down 2.9 points from the previous month, while the non-manufacturing sector was 75.0, down 0.7 points. The construction industry (71.5) fell 4.9 points from the previous month, whereas the service industry (75.7) rose by 0.1 points.

Looking at the outlook by category, exports (77.8→85.0) rose compared to the previous month, while financial conditions (77.1→75.3), domestic sales (77.3→76.0), and operating profits (75.3→75.1) declined. The employment level (95.0→94.8), which is a counter-trend indicator, is expected to improve compared to the previous month.

The main management difficulties for SMEs in July were sluggish domestic demand (62.9%), followed by rising labor costs (44.3%), excessive competition among companies (34.6%), and rising raw material prices (31.2%).

The average operating rate of small and medium manufacturing enterprises in June was 71.7%, down 1.4 percentage points from the previous month and 0.7 percentage points lower than the same month last year.

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