Daegu manufacturing industry outlook improves in the 4th quarter, construction industry continues to remain sluggish

The manufacturing industry in Daegu was expected to see some improvement in the fourth quarter of this year, but the construction industry was expected to remain sluggish.

The Daegu Chamber of Commerce and Industry announced on the 27th that according to a survey of 210 local companies (160 manufacturing companies and 50 construction companies) on the corporate business outlook for the fourth quarter, the BSI (Business Survey Index) for the manufacturing industry was 78, up 10 points from the previous quarter, but for the construction industry, it was the same at 36.

If the BSI is over 100, it means that more companies expect the economy to improve than before, and if it is below 100, it means the opposite.

Looking at the detailed outlook, in the manufacturing industry, the number of export companies increased by 16 points to 83 from the previous quarter, and the number of domestic companies increased by 9 points to 77.

In the construction industry, all sectors fell below the standard (100), but some areas improved.

The material price was 50, up 26 points from the previous quarter, and the material supply and demand (50) and financial situation (36) also increased by 8 points each.

However, the manpower supply and demand situation was 74, down 8 points from the previous quarter.

Regarding the 'expectation to achieve the operating profit target' this year, 78.1% of the responding companies predicted that it would 'fall short'.

Lee Sang-gil, full-time vice chairman of Daegu Chamber of Commerce, said, “The improving outlook for the manufacturing industry is positive, but we believe that 8 out of 10 companies will find it difficult to achieve their operating profit targets this year,” adding, “Policy support is needed to ease the cost burden on companies and improve local investment conditions.”