November SME Business Outlook Index Up 2.1 Points from Previous Month... Export Sentiment Remains Negative

Manufacturing and Non-Manufacturing Sectors Rise
Service Sector Falls by 0.2 Points

The Business Survey Index (SBHI) for small and medium-sized enterprises (SMEs) in November rose by 2.1 points compared to the previous month. Both the manufacturing and non-manufacturing sectors saw increases, while the service sector experienced a slight decline.

On October 30, the Korea Federation of SMEs announced the results of the "Business Survey for SMEs: November 2025." The business outlook index (SBHI) for November stood at 77.5, up 2.1 points from the previous month and 0.4 points from the same month last year. An SBHI of 100 or higher indicates that more companies have a positive outlook on business conditions than those with a negative outlook.

In particular, the manufacturing sector rose by 6.4 points to 83.0 compared to the previous month. During the same period, the non-manufacturing sector increased by 0.2 points to 75.1, while the service sector declined by 0.2 points to 76.5. By industry, 21 manufacturing sectors, including printing and reproduction of recorded media (up 14.2 points) and beverages (up 12.1 points), saw increases from the previous month. In contrast, two sectors-other manufacturing (down 2.3 points) and leather, bags, and footwear (down 2.2 points)-declined.

While the outlook for domestic sales was generally positive, many respondents had a negative view of exports. By category, domestic sales were forecast at 78.5, up 4.1 points from the previous month, while exports were projected at 84.6, down 3.7 points. Employment, which is an inverse trend indicator, was expected to worsen by 0.4 points to 97.6 compared to the previous month.

When compared to the average trend over the past three years (average SBHI), the manufacturing sector showed improvements in exports, funding conditions, and raw material prices. However, other indicators were expected to deteriorate relative to the three-year average. In the non-manufacturing sector, all indicators were forecast to be worse than the three-year average.

The most frequently cited management challenge for SMEs in October 2025 was "sluggish sales" (60.3%). This was followed by ▲ rising labor costs (32.8%), ▲ intensified competition among companies (29.2%), and ▲ increases in raw material prices (27.8%).

The average operating rate for small and medium-sized manufacturers in September 2025 was 72.4%, up 2.0 percentage points from the previous month and 0.9 percentage points from the same month last year.

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