Yonhap reported that South Korean manufacturers' business confidence for November 2012 dipped to a three month low as the growth outlook remained bleak amid the global economic downturn,.

According to a monthly survey by the Bank of Korea, the index of manufacturers' outlook on business conditions came in at 70 for November 2012, down from 72 tallied for October 2012. The index measures manufacturers' expectations for the coming month. The November 2012 index marked the lowest reading since the index for August 2012 hit an identical 70.

A reading below the benchmark 100 means pessimists outnumber optimists. The index is based on a nationwide survey of 2,522 companies conducted from October 15th 2012 to October 22nd 2012.

The index of manufacturers' assessment of current business conditions came in at 68 in October, down from 69 recorded for September 2012.

The data came as the euro zone debt crisis and China's slowing growth are casting clouds over the export dependent Korean economy. The South Korean economy grew a mere 0.2% QoQ in the third quarter, the slowest in nearly three years. The BOK also cut the key rate and its growth forecast for 2012 and 2013 last week due to growing downside risk.

The bank's 2012 and 2013 growth outlooks were lowered to 2.4% and 3.2%, respectively.

A separate poll by the Federation of Korean Industries showed that Korean firms remained pessimistic about their business outlook for next month, with the business sentiment index staying below the benchmark for the sixth straight month.

Local manufacturers picked economic uncertainty and sluggish domestic demand as their main business setbacks.

The index gauging smaller firms' outlook on business conditions reached 68 for November 2012, down from 72 for October 2012. The index measuring domestic focused companies' business prospects came in at 67 for next month, compared with 70 for this month.

Source - Yonhap News

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