July 16, 2019 09:59
Six out of 10 manufacturers in Korea have failed to meet their mid-year targets, with 84.9 percent blaming slumping private spending, 28 percent the minimum wage hike and 18.7 percent the U.S.-China trade war.
The figures come from a survey of 2,300 manufacturers nationwide released on Monday by the Korea Chamber of Commerce and Industry. It permitted multiple answers.
Business sentiment is falling dramatically. The business survey index for the third quarter stood at a dismal 73, down 14 points from the previous quarter. Any reading below 100 means pessimists outnumber pessimists.
"The U.S.-China trade dispute has continued for seven months, while exports are declining as domestic consumption remains weak, resulting in a rapid decline in real economic conditions," the KCCI said.
Some 54.3 percent said the biggest obstacle they face is slow sales due to the weak global and domestic economy. Some 27.9 percent complained about rising costs, including wages. Only 6.9 percent expect conditions to improve in the third quarter.
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