Manufacturing Outlook for May Turns Gloomy Amid Middle East War

Domestic manufacturing sentiment continues to weaken amid the fallout from the Middle East war.
According to the Professional Survey Index (PSI) released by the Korea Institute for Industrial Economics & Trade (KIET) on the 26th, the manufacturing outlook PSI for May came in at 95, suggesting it will remain below the benchmark.
A PSI reading above 100 indicates that more respondents expect business conditions to improve from the previous month, while a reading below 100 means more expect conditions to worsen.
Exports scored 102, slightly above the benchmark, but domestic demand at 96, production levels at 96, and investment at 99 all fell short. By sector, semiconductors (150), home appliances (113), shipbuilding (107), and steel (156) all topped 100, pointing to a brighter outlook. In contrast, mobile phones (69), automobiles (85), machinery (75), chemicals (89), and textiles (50) remained below the benchmark.
Senior Research Fellow Min Sung-hwan said, "The manufacturing outlook PSI for May is expected to remain below the benchmark. Domestic demand may stay weak, but exports are expected to rebound." He added, "The outlook PSI is expected to rise for chemicals, steel, home appliances, automobiles, machinery, and semiconductors."
The survey was conducted from the 13th to the 17th among 129 experts across different industries.
aber@fnnews.com Park Ji-young Reporter