The third-quarter economic outlook index for middle-market enterprises has slightly decreased compared to the previous quarter. While the manufacturing sector could not sustain its upward trend and has contracted again, the non-manufacturing sector has seen slight improvement.
According to the Federation of Middle Market Enterprises of Korea (FDMEK) on 1st, the third-quarter economic outlook index for middle-market enterprises stands at 78, down 2.7 points from the previous quarter (80.7).
The survey was conducted from May 26 to June 10, targeting 800 corporations. An index above 100 indicates that more corporations view the next quarter's economy positively, while a figure below 100 signifies the opposite.
The manufacturing outlook index recorded 76.9, down 5.7 points from the previous quarter (82.6). Despite the electronics components industry jumping to 107.7, up 27.8 points, the overall index declined due to sluggish performance in key sectors such as automobiles (70.7, down 6.1 points) and other manufacturing (67.9, down 32.1 points).
The non-manufacturing index rose slightly to 79.2, up 0.4 points from the previous quarter (78.8). Notably, recovery trends were prominent in real estate (75.6, up 11.9 points) and transportation (88.5, up 10.5 points).
The export outlook index dropped for both manufacturing (92.7, down 6.9 points) and non-manufacturing (90.6, down 2.4 points), totaling 91.9, which is a decrease of 5.3 points from the previous quarter (97.2). In contrast, the domestic demand outlook index increased 1.4 points to 78.1. The outlook for domestic demand in manufacturing fell to 76.1, down 0.4 points, marking a continuing decline for five consecutive quarters, but the electronics components sector (109.5) surged by 30.5 points, returning to a positive outlook for the first time in six quarters.
Forecasts for major management indicators, including production, operating profit, and funds, have mostly shown slight declines compared to the previous quarter.
Lee Ho-jun, the executive vice president of the Middle Market Enterprises Association, noted, "Despite positive factors such as political stabilization and a KOSPI of 3100, ongoing domestic and international uncertainties like the United States' reciprocal tariff policy, instability in the Middle East, declining export competitiveness, and sluggish domestic demand appear to be leading to continued negative economic sentiment within the middle-market sector."