The outlook for small and mid-size businesses in August improved slightly from a month earlier. Optimism grew mainly in services, but the manufacturing outlook worsened.
The Korea Federation of Small and Medium Enterprises announced on the 30th the results of the "August 2026 small and mid-size business outlook survey," conducted from the 14th to the 21st on 3,063 small and mid-size businesses.
The August business outlook index (SBHI) was 80.0, up 1.8 points from the previous month. When the index is above 100, more corporations view the economy positively; when it is below 100, the opposite is true.
The manufacturing outlook index was 80.1, down 2.4 points from the previous month. The repair of industrial machinery and equipment rose 6.9 points, from 84.1 to 91.0, and leather, bags, and shoes rose 5.4 points, from 77.2 to 82.6, among six industries that improved.
Textiles fell 11.7 points, from 77.9 to 66.2, and medical substances and pharmaceuticals dropped 8.0 points, from 90.1 to 82.1, among 17 manufacturing industries whose outlook worsened.
The nonmanufacturing outlook index was 80.0, up 3.7 points from the previous month. Construction rose 0.8 points, from 70.3 to 71.1, and services climbed 4.3 points, from 77.5 to 81.8.
Among services, real estate jumped 15.3 points, from 75.2 to 90.5, marking the biggest increase. Wholesale and retail also rose 5.9 points, from 73.0 to 78.9. In services, a total of four industries saw an improved outlook.
Arts, sports, and leisure-related services fell 7.4 points, from 78.3 to 70.9, and repair and other personal services dropped 5.4 points, from 81.9 to 76.5, among six industries whose outlook deteriorated.
By category, the operating profit outlook rose from 74.6 to 77.6, and the funding situation increased from 77.0 to 79.9. Domestic sales also improved from 78.2 to 79.7, but the export outlook inched down from 87.8 to 87.3. With lower figures indicating a more positive view, the employment outlook improved from 96.3 to 95.5.
On July, the biggest management challenge cited by small and mid-size businesses was "sluggish sales," with the proportion of respondents reaching 50.7%. Rising raw material prices followed at 41.1%, then intensified competition among firms (27.9%), and higher labor costs (24.7%).
In June, the average operating rate of small and mid-size manufacturing industries was 75.9%, up 0.5 percentage points from the previous month.
By corporation size, the operating rate of small corporations rose 0.2 percentage points, from 71.4% to 71.6%, and mid-size corporations increased 0.7 percentage points, from 77.7% to 78.4%.
By corporation type, general manufacturing rose 0.8 percentage points, from 75.2% to 76.0%, while innovation-type manufacturing fell 0.1 percentage points, from 75.7% to 75.6%.