SMEs "March Economic Outlook Better Than Previous Month"... Clear Temperature Differences by Industry

Negative Assessment for Clothing and Clothing Accessories Sectors

Small and medium-sized enterprises (SMEs) predicted that the economic outlook for March would improve compared to the previous month. However, sectors such as clothing and clothing accessories and other transportation equipment were expected to worsen, showing clear differences by industry.

On the 27th, the Korea Federation of SMEs announced the results of the 'March 2025 SME Economic Outlook Survey,' reporting that the Small Business Health Index (SBHI) for March business conditions rose by 7.2 points from the previous month to 74.7. Compared to the same month last year (81.8), it was down by 7.1 points. This survey was conducted from the 12th to the 18th of the month, targeting 3,072 SMEs.

By industry, manufacturing and non-manufacturing recorded 80.7 and 72.1 respectively, rising 5.5 points and 7.9 points from the previous month. Construction and service industries also increased by 0.7 points and 9.5 points to 65.8 and 73.5 respectively compared to the previous month.

However, there were differences even within manufacturing. Among 20 manufacturing sectors that rose compared to the previous month, centered on textile products (63.6→74.9) and other machinery and equipment (72.3→82.3), two sectors?clothing accessories and fur products (82.5→79.6) and other transportation equipment (93.0→91.0)?showed a decline compared to the previous month. Also, electrical equipment (84.9) remained steady compared to the previous month.

In non-manufacturing, construction (65.1→65.8) rose by 0.7 points from the previous month, and services (64.0→73.5) increased by 9.5 points. Within services, all 10 sectors, including arts, sports and leisure-related services (68.9→83.4) and wholesale and retail trade (58.7→69.8), rose compared to the previous month.

Looking at the outlook by category across all industries, domestic sales (68.0→74.4), exports (83.1→87.7), financial conditions (68.7→73.3), and operating profits (67.5→71.1) all showed increases compared to the previous month. Employment (96.2→95.4), which follows a reverse trend, was also expected to improve compared to the previous month.

Comparing the average SBHI for the same month over the past three years, most industries showed a clear worsening trend. In manufacturing, all categories except raw materials, including production, domestic sales, and exports, were expected to deteriorate, while in non-manufacturing, only two categories?exports and employment, which follows a reverse trend?were expected to improve, with other categories forecasted to worsen.

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