Korea's manufacturing confidence hit the lowest level in more than three years for the fourth quarter of this year due to persistently weak domestic demand, a poll showed Tuesday.
In its survey of 2,500 local manufacturers, the Korean Chamber of Commerce and Industry (KCCI) said the business sentiment index (BSI) plunged to 74 for the October-December period from 88 for the current quarter.
The BSI for the coming quarter marks the lowest level since the second quarter of 2009 when it reached 66 due to the 2008 global financial crisis. The index has remained below 100 since the fourth quarter of 2011.
A reading below 100 means pessimists outnumber optimists.
Of the respondents, 68.5 percent said that shrinking consumer sentiment is the biggest hurdle to their business, while 15.1 percent cited a possible change in the business-related policy in the wake of the presidential election in December as another reason for the bearish business outlook.
The consumer sentiment index -- a gauge of consumers' overall economic outlook, living conditions and future spending -- came in at 99 for September, unchanged from the previous month, according to a survey by the Bank of Korea.
Sales at both local discount outlets and department stores, including Lotte Department Store, dropped from a year ago for a third month in August, showing a possible contraction in consumer spending, according to the Ministry of Knowledge Economy.
Meanwhile, big companies were more downbeat about their fourth-quarter business than small and mid-sized companies. Big companies' business sentiment posted 69, while that of smaller companies came to 75.
The KCCI called on the government to boost domestic consumption via aggressive fiscal and monetary stimulus. (Yonhap)