South Korean manufacturing firms have turned less optimistic about the business outlook for the first quarter of 2005, hit by worries over an uncertain economic recovery, a government survey showed on Sunday. The Commerce Ministry said its business survey index (BSI) on the sales outlook for manufacturing firms fell to 93 for the first three months of 2005 from 109 in the final quarter of 2004.
But the BSI should improve to an average of 115 for all of 2005 as the country's economic recovery is expected to take a firmer root from the second half, it said.
A reading above 100 means the number of companies expecting growth in sales outnumbers those predicting a decline.
"In the near term, sluggish business sentiment is likely to continue into the first quarter of 2005," said a ministry statement.
The ministry said the government needed to implement aggressive demand-stimulating policies but remain within a sound fiscal framework.