SEOUL, KOREA - September output by small- and medium-sized manufacturers has declined to a record-low level since January this year.

 

According to a report "Small- and Medium-sized Manufacturer Trend" published on November 5 by IBK Economic Research Institute, a research arm of Industrial Bank of Korea, the September SME manufacturing output index was 123.6, the lowest figure in eight months. This is down 2.4 percent from the previous month and down 2.0 percent from the same month last year.

 

The decline was led by a drop in textiles and fur and chemicals. The ratio of capacity utilization was 71.7 percent for the month, down for five consecutive months. The percentage of SMEs making facility investment was 15.6 percent, down 2.5 percentage points from August. But the small business operators' cash position has somewhat improved, because of the Chuseok holidays that saw a spike in sales and lower inventories.

 

An IBK Economic Research Institute analyst said, "Despite the fact that the September SME manufacturing output has declined by a relatively large margin and facility investment has not picked up, there is one bright spot that excess inventories are being run down gradually."