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2004 business sentiment cloudy; BSI for first quarter of next year.
(From The Korea Herald)
By Kim Mi-hui Korean companies in the manufacturing sector do not expect business to pick up in the first quarter of 2004 and predict another year of worsening economic conditions, according to industry sources yesterday.
The Korean Chamber of Commerce and Industry's business sentiment index, a survey of 1,307 major manufacturing firms, offered an expectation index of 89 for the January-March quarter, a slight contraction from 90 the previous quarter. The figure marks the fifth quarterly negative reading since last year.
A BSI reading of below 100 indicates that more than half of those surveyed are pessimistic about future sales, with lower figures suggesting weaker sales forecasts.
According to the survey, only 22.1 percent of those surveyed, or 289, believed that business would improve in the first quarter, while 32.7 percent forecast a further deterioration.
Among the negative factors cited for the pessimistic views are swelling household debts, sluggish consumption, financial market instability and labor disputes.
The chamber noted that the ...
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