September SME Business Outlook Index 77.4... Up 0.8 Points from Previous Month

Survey of 3,068 Small and Medium Enterprises
Decline Stops After 2 Consecutive Months, Slight Rebound

The Small and Medium Business Economic Outlook Index (SBHI) rose by 0.8 points compared to the previous month. It stopped declining for two consecutive months and showed a slight rebound.

Photo by Korea Federation of SMEs

The Korea Federation of SMEs announced on the 29th the results of the "September 2024 Small and Medium Business Economic Outlook Survey," conducted from the 13th to the 21st with 3,068 small and medium enterprises.

The economic outlook index for September was 77.4, up 0.8 points from the previous month. This figure marks a slight rebound after halting a two-month consecutive decline of 1.4 points in both July and August. Compared to the same month last year (83.7), it decreased by 6.3 points.

The manufacturing sector's economic outlook for September rose 2.3 points from the previous month to 82.7. The non-manufacturing sector increased by 0.2 points to 75.2 compared to the previous month.

Within manufacturing, 17 industries showed an increase compared to the previous month, led by printing and recorded media reproduction (11.3 points) and food products (10.7 points). Conversely, six industries, including industrial machinery and equipment repair (7.7 points) and electronic components, computers, audiovisual and communication equipment (5.4 points), declined compared to the previous month.

In the non-manufacturing sector, construction rose by 1.7 points from the previous month, while services decreased by 0.1 points. Within services, four industries such as arts, sports, and leisure-related services (12.6 points) and transportation (8.2 points) increased, whereas six industries including accommodation and food services (8.5 points) and repair and other personal services (2.0 points) declined.

The biggest management difficulty for SMEs in August was sluggish domestic demand (62.0%). This was followed by rising labor costs (45.1%), excessive competition among companies (28.3%), and rising raw material prices (25.9%).

The average production rate in July was 71.6%, down 0.1 percentage points from the previous month and 0.5 percentage points compared to the same month last year. By company size, small enterprises increased by 0.1 percentage points from the previous month, while medium enterprises decreased by 0.3 percentage points.

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