Q4 Business Outlook Index for Mid-Sized Enterprises Hits 81.4, Highest Level This Year

Korea Federation of Middle Market Enterprises Releases Results of “2025 Q4 Business Outlook Survey”

The Business Outlook Index for mid-sized enterprises in the fourth quarter rose by 3.4 points compared to the previous quarter, marking the highest figure recorded this year.

According to the Korea Federation of Middle Market Enterprises’ “2025 Q4 Business Outlook Survey” released on the 25th, the Business Outlook Index for mid-sized companies in the fourth quarter reached 81.4, up 3.4 points from the previous quarter’s 78.0. The survey was conducted with 800 mid-sized companies from August 20 to September 3. An index above 100 indicates that more companies have a positive outlook for the next quarter compared to the previous quarter, while a figure below 100 indicates the opposite.

Specifically, the manufacturing sector’s Business Outlook Index posted a slight decline of 0.5 points to 76.4 from the previous quarter’s 76.9, but the non-manufacturing sector index surged by 6.5 points to 85.7, driving the overall increase. In the manufacturing sector, declines were observed in electronic components (91.5, down 16.2 points), primary metals (67.6, down 5.8 points), and food and beverages (72.9, down 4.0 points). In contrast, the non-manufacturing sector saw significant increases in transportation (104.6, up 16.1 points) and real estate (90.0, up 14.4 points).

The Export Outlook Index for mid-sized companies stood at 90.8, a slight decrease from 91.9 in the previous quarter. The manufacturing sector dropped by 6.9 points to 85.8, while the non-manufacturing sector rose by 8.5 points to 99.1. In manufacturing, key export industries such as electronic components (93.5, down 19.3 points) and primary metals (69.9, down 19.1 points) recorded double-digit declines. Except for the wholesale and retail sector (88.1, down 6.7 points), the non-manufacturing sector experienced sharp increases in transportation (123.5, up 25.7 points) and publishing, communications, and information services (108.1, up 19.8 points), shifting the outlook to positive.

The Domestic Demand Outlook Index for mid-sized companies was tallied at 82.6, up 4.5 points from the previous quarter’s 78.1. Both manufacturing (77.1, up 1.0 point) and non-manufacturing (87.4, up 7.5 points) sectors saw increases. However, forecasts for major management indicators such as production, operating profit, and funding showed slight declines compared to the previous quarter.

Lee Hojun, Executive Vice President of the Korea Federation of Middle Market Enterprises, stated, “While the fourth quarter business outlook for mid-sized enterprises has somewhat improved, mainly in the non-manufacturing sector, the index has continued to fall short of last year’s levels each quarter due to ongoing political turmoil since the end of last year and the impact of U.S. reciprocal and item-specific tariffs.” He added, “To respond effectively to changes in the global economic environment, including U.S. trade pressures, it is essential to strengthen industrial competitiveness, including manufacturing. The public and private sectors must unite their efforts to create a legal and institutional environment that alleviates management difficulties and to provide forward-looking policy support that can address on-site uncertainties.”

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