Business Sentiment Index for Mid-Sized Companies Rises for Fifth Consecutive Quarter in Q4

Korea Federation of Middle Market Enterprises Releases '2026 Q4 Business Outlook Survey' Results
Manufacturing and Non-Manufacturing Sectors Rise Together

The Business Sentiment Index (BSI) for mid-sized companies has risen for the fifth consecutive quarter.

On September 29, the Korea Federation of Middle Market Enterprises announced the results of its 'Business Outlook Survey for the Fourth Quarter of 2026.' The BSI for mid-sized companies in the fourth quarter was recorded at 90.5, a 2.9-point increase from the previous quarter (87.6). The survey was conducted from August 24 to September 4 with 800 mid-sized companies. A reading above 100 indicates an optimistic outlook, while below 100 indicates a pessimistic sentiment.

The Manufacturing BSI rose by 5.7 points to 90.1 compared to the previous quarter (84.4), driving the overall increase. The Non-Manufacturing BSI stood at 90.7, up 0.1 points from the previous quarter.

The Export Outlook Index for mid-sized companies recorded a slight decrease of 2.3 points from the previous quarter, standing at 93.7. In the manufacturing sector, it dropped by 4.7 points to 92.1 from the previous quarter, while the non-manufacturing sector saw a 0.6-point increase to 94.6.

The Domestic Demand Outlook Index for mid-sized companies posted 91.6, up 1.5 points from the previous quarter (90.1), marking its sixth consecutive quarterly increase. The non-manufacturing sector saw a 3.1-point rise to 92.6 from 89.5 in the previous quarter, while the manufacturing sector experienced a slight decline of 1.0 point to 89.7 from 90.7.

Outlooks for key management indicators such as production, operating profit, and liquidity showed mixed trends. The Production Outlook Index continued to increase from the previous quarter, while operating profit and liquidity outlook indices declined.

Kim Hyuncheol, Executive Vice President of the Korea Federation of Middle Market Enterprises, stated, "Although the Business Sentiment Index for mid-sized companies has risen for five consecutive quarters, the prolonged crisis in the Middle East and changes in U.S. tariff policy remain significant risk factors, making it difficult to let our guard down." He added, "We will do our utmost to address challenges in exports, finance, and other areas by closely communicating with the government, the National Assembly, and related sectors, so that mid-sized companies' expectations for economic recovery can translate into tangible business vitality through pioneering overseas markets and expanding investment."

This content was produced with the assistance of AI translation services.