Sales of South Korean companies in China continued to deteriorate in the second quarter due largely to a dip in demand for their products, a survey showed Monday, apparently reflecting worsening economic conditions there.
According to the Korea Institute for Industrial Economics and Trade, the business survey index for sales of South Korean firms in China in the second quarter came to 66, down from 81 in the first quarter.
A BSI reading below 100 indicates that pessimists outnumber optimists. The latest index surveyed 226 South Korean firms currently operating in China.
The index for market conditions also came to 71, failing to breach the 100 mark for a second consecutive quarter.
Out of those surveyed, the largest portion of 28.4 percent pointed to a drop in local demands for their poor sales in the second quarter.
In the first quarter, 34.8 percent had said employment issues, including a shortage of manpower and a rise in labor costs, were the most serious problems facing them, according to the institute.
The automobile and electronics sectors appeared to be most affected by worsening sentiments of Chinese consumers.
In the second quarter, the sales BSI of the automobile industry plunged to 45 from 94 in the previous quarter while that of the electronics sector also tumbled from 88 to 54 over the cited period.
Only the chemical and logistics industries registered a sales BSI reading of over 100.
The companies also held a gloomy outlook for the third quarter with pessimists outnumbering optimists in all BSI readings for sales, market conditions and management. (Yonhap)
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