Korean companies in China becoming less optimistic
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Korean companies operating in China are less optimistic about business conditions in the fourth quarter of this year, as the Chinese economy is cooling amid a trade spat with the United States, a survey showed Sunday. According to the Korea Institute for Industrial Economics and Trade (KIET), its business survey index (BSI) stood at 103 for the October-December period, down 12 points from the previous quarter.
A BSI reading above 100 means optimists outnumber pessimists. The BSI for the sales outlook was also still over 100, but came in at 117, down 8 from a quarter ago.
By sector, electronics, electric and retail were more pessimistic about the fourth quarter, while automaking and textiles remained bullish over business conditions in China.
Last week, China reported its weakest quarterly growth since the first quarter of 2009, during the global financial crisis.
Questions & Answers
Q.What does the survey indicate about Korean companies' business outlook in China?
What does the survey indicate about Korean companies' business outlook in China?
Korean companies are less optimistic about business conditions in China for the fourth quarter. This is due to the Chinese economy cooling amidst a trade dispute with the United States.
Q.Which sectors are showing more pessimism regarding the fourth quarter in China?
Which sectors are showing more pessimism regarding the fourth quarter in China?
The electronics, electric, and retail sectors are more pessimistic about business conditions in China for the upcoming fourth quarter. Other sectors, such as automaking and textiles, remain bullish.
Q.How has the Business Survey Index changed compared to the previous quarter?
How has the Business Survey Index changed compared to the previous quarter?
The Business Survey Index (BSI) stands at 103 for the October-December period, which is a decrease of 12 points from the preceding quarter. A BSI above 100 indicates more optimists than pessimists.