KIET Korea Institute for Industrial Economics and Trade

The overall composite Business Survey Index for the manufacturing sector in Q3 2020 still remained under the baseline (100). However,
for the first time this year, all feeder indices excepting only inventory (100) have considerably improved compared to the previous quarter. Specifically, business conditions (84), sales (84), domestic demand (85), exports (91), ordinary profit (82), and operation ratio of facilities (91) in the manufacturing sector have shown double-digit increases in this quarter.
The BSI outlook for the 4th quarter of 2020 indicates that the business environment for manufacturers will worsen compared to this 3rd quarter, because all BSI outlook indices still remain under the baseline (100). However, it is important to note that all BSI outlook indices are projected to slightly increase quarter on quarter. These means that the business expectations of corporations in the manufacturing sector for the next quarter are expected to improve gradually.