S. Korean manufacturers' sentiment falls for June

SEOUL, May 29 (Yonhap) -- South Korean manufacturers are more pessimistic about business conditions in June than a month earlier, a poll showed Friday, reflecting their disappointment over a slower-than-expected economic recovery.

The business sentiment index, which measures the outlook of manufacturers on their business conditions for the coming month, reached 77 for June, down from 82 for May, according to the Bank of Korea (BOK). On a seasonally-adjusted basis, the June reading slipped to 75 from 76.

A reading below the benchmark 100 means that pessimists outnumber optimists. The index has been below the threshold since July 2010, when it hit 100.

The on-month decline came as both exporters and domestic-focused companies turned negative about business prospects. The index measuring exporters' sentiment dipped to 79 from 81, while that of domestic-focused firms slumped to 76 from 82.

The monthly data comes amid concerns that Asia's fourth-largest economy may not rebound as much as anticipated.

Earlier this month, the state-run Korea Development Institute lowered its 2015 growth forecast for the country to 3 percent this year from an earlier estimate of 3.5 percent.

The prediction is lower than the 3.1 percent growth estimated by the central bank and much lower than the mid-3 percent range being targeted by government policymakers. The South Korean economy expanded 3.3 percent on-year in 2014.

The BOK said 1,505 manufacturers responded to the survey conducted between May 14 and 21.

mil@yna.co.kr
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