The September business outlook as seen by small and midsize companies rebounded in a month. Expectations for exports, domestic sales, and operating profit all improved. However, the average operating rate at actual small manufacturing sites fell, and the biggest management difficulty was still cited as "sluggish sales."
The Korea Federation of Small and Medium Enterprises said on the 30th that in the results of the "September 2026 SME business outlook survey," conducted on 3,060 small and midsize companies on the 12th-19th, the September business outlook index (SBHI) was 84.8, up 4.8 points from the previous month.
An SBHI below 100 means more corporations expect the economy to worsen than to improve.
By industry, the manufacturing outlook was 87.1, up 7.0 points from the previous month. Non-manufacturing also rose 3.7 points to 83.7.
In manufacturing, outlooks improved in 19 industries, including nonmetallic mineral products up 17.2 points and beverages up 16.0 points. In contrast, four industries saw their outlooks worsen, including industrial machinery and equipment repair down 14.8 points and leather, bags, and shoes down 7.6 points.
In non-manufacturing, the service industry outlook rose 5.5 points, while construction fell 5.4 points. Among services, the outlook for arts, sports, and leisure-related services jumped 22.8 points, the largest increase, and wholesale and retail also rose 7.2 points.
Detailed management indicators expected by corporations also improved overall. The export outlook rose from 87.3 to 94.2, and domestic sales from 79.7 to 83.8. The operating profit outlook also climbed from 77.6 to 81.5, and the cash flow outlook from 79.9 to 81.8.
However, current business conditions still appeared tough. The biggest management difficulty cited by small and midsize companies in August was "sluggish sales" at 52.4%. That was followed by higher raw material prices at 41.0%, intensifying competition among firms at 31.4%, and rising labor costs at 27.8%.
Indicators on actual production sites diverged from the outlook. The average operating rate of small manufacturers in July was 75.2%, down 0.7 point from the previous month. Small firms were at 71.2% and medium-sized firms were at 77.6%, with operating rates falling from the previous month in both cases.