November SME Business Outlook Index 77.1... 1.3 Points Decrease Compared to Previous Month

Failed to Maintain Upward Trend Over Past 2 Months
Down 3.6 Points Compared to Same Month Last Year

The Small and Medium Business Index (SBHI) for November fell by 1.3 points compared to the previous month. It failed to continue the upward trend seen over the past two months.

The Korea Federation of SMEs announced the results of the "November 2024 Small and Medium Business Outlook Survey" conducted from the 14th to the 21st of last month, targeting 3,064 small and medium enterprises, on the 30th.

The business outlook index for November was 77.1, down 1.3 points from the previous month. Compared to the same month last year (80.7), it decreased by 3.6 points.

The manufacturing sector's November business outlook fell 2.0 points from the previous month to 82.3, while the non-manufacturing sector dropped 1.1 points to 74.8. Construction (71.8) decreased by 0.4 points, and services (75.4) declined by 1.3 points compared to the previous month.

Within manufacturing, six industries rose compared to the previous month, led by beverages (9.2 points) and electrical equipment (4.2 points). Conversely, 17 industries, including leather bags and footwear (down 8.6 points) and electronic components, computers, audiovisual, and communication equipment (down 6.2 points), declined.

In the non-manufacturing sector, construction fell by 0.4 points and services by 1.3 points compared to the previous month.

Operating profits increased compared to the previous month, while exports, domestic sales, and financial conditions declined. Employment level (94.8), which is a counter-trend indicator, is expected to remain stable compared to the previous month.

The main management difficulties for SMEs in October were dominated by sluggish domestic demand (63.1%). This was followed by rising labor costs (48.2%), excessive competition among companies (36.6%), and rising raw material prices (29.1%).

The average operating rate of small and medium manufacturers in September was 71.5%, showing no change from the previous month. By company size, small enterprises decreased by 0.1 percentage points compared to the previous month, while medium enterprises remained stable.

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