South Korean exporters’ assessment of their business outlook for the third quarter was the weakest in more than three years, a private survey showed on Friday, hit by the fiscal crisis in Europe and slowing growth elsewhere.
An index measuring how exporters assess their business conditions in the third quarter fell to 87.5 from 94.9 for the April-June period, its lowest since the second quarter of 2009, the Korea International Trade Association (KITA) said.
In addition to weaker growth in key export markets, exporters also cited higher raw material costs and greater volatility for the South Korean won as major challenges.
Shipbuilders, makers of industrial chemical products and agricultural product producers were the most pessimistic about their business conditions for the next quarter, the survey found.
The results of the survey come after KITA slashed its exports growth forecast on Thursday for the year to 2.4 percent from 8.2 percent previously, citing weaker demand from Europe and China. The government is also expected to lower its exports growth target on Sunday.