[NEWSMP] There is keen interest in the outlook of the pharmaceutical manufacturing industry, as recent survey results from the Bank of Korea and the Korea Institute for Industrial Economics & Trade (KIET) show divergent views.
According to the Bank of Korea’s recently released September 2024 Business Survey result and Economic Sentiment Index, the Business Survey Index (BSI) for exports of the pharmaceutical manufacturing sector in October fell below 100, while domestic demand was 113, showing the conflicting outlook.
The BSI is an index for business economic trends and forecasts over the following month, compiled by surveying more than 3,500 corporations nationwide about the assessment of current business management situations and future expectations.
The index is calculated by subtracting the number of corporations that responded negatively from those that responded positively, dividing the result by the total number of respondents, and then adding 100.
Thus, a BSI of less than 100 means that more panels gave negative responses than positive ones, whereas a higher BSI means that more panels gave positive responses than negative ones.
In a similar survey on the bio-health industry, KIET predicted an export outlook index of 122 in October, but a domestic demand index of 94, contrasting with the Bank of Korea's assessment.
The analysis suggested that exports would expand due to the influence of biosimilars, while the domestic market would shrink due to the economic recession and medical crises.
The Bank of Korea’s survey result also showed that the overall business conditions of the pharmaceutical manufacturing sector are expected to remain weak at 96, down from the previous month.
In addition to exports, new orders and profitability were also below 100 at 94, while financial and workforce conditions were well below 100, indicating more negative views.
On the other hand, domestic demand, production, operating rate, and production facility surpassed 100, and even facility investment, which had been below 100, reached a balance at 100.
