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Korcham (Korea Chamber of Commerce & Industry) said that the third quarter's BSI outlook numerical value was totaled as "94" in the Chamber's survey of the third quarter's corporate business conditions outlook for this year, based on 1,485 manufacturing companies questioned.
BSI shows corporate deceleration business conditions between 0 and 200. If it crosses over 100, it means that there are more companies forecasting the next quarter business conditions would take a favorable turn than this quarter. If it is under 100, it means the opposite outlook.
The BSI outlook numerical value dropped below 100 for the first time since the first quarter of last year.
In particular, in comparison with larger companies, the degree of deceleration of business conditions of smaller companies, which are vulnerable to exchange rate fluctuations and high oil prices, appeared to be conspicuous.
Export companies rather than domestic demand companies predicted more frequently that relatively poor business conditions would become even worse.
By types of industry, automobile (72), steel (80), textiles (82), and petrochemicals (90) forecast aggravated business conditions. By contrast, electronic telecommunications (102), mechanics (102), shipbuilding (107), refined oil (120) predicted business conditions would show more improvement.
All companies pinpointed "Exchange rate (32.1%)", and "Raw material (31.1%) as a bottle-neck of their management, forecasting that exchange rate decline and difficulties accompanied by oil price rises would continue in the third quarter too.
An official familiar with BSI at Korcham said that a countermeasure for stabilizing the economy was urgently needed since pessimism among businesspersons can exert a bad influence upon the economy as well.