Business Confidence in South Korea Shaky

Business confidence in South Korea is shaky right now. The sentiment index for December shows that more companies are feeling pessimistic, with a reading of 97.3. This trend of gloom hasn't changed for over two and a half years, similar to what was seen between mid-2018 and early 2021.

Let's break down what's happening across different sectors. In manufacturing, the index sits at 89.9. While automobile and transport equipment makers are upbeat, the rest struggle with too much inventory and financial hurdles. On the flip side, non-manufacturing sectors like information, communication, and construction performed well, scoring a 105.1, though future downturns loom.

What's causing this unease? A lot of it comes from external issues, like the uncertainty after the recent U.S. presidential election. For manufacturers, these external risks have pushed sentiment to its lowest in over a year, especially with fears around export declines and possible changes in trade policies.

Looking ahead to December, the manufacturing outlook is even bleaker, with a small drop predicted in the confidence index. Non-manufacturing sectors show a slight upturn but are also expected to face headwinds. Overall, South Korean businesses are bracing for rocky times ahead, influenced by both domestic and international factors.