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KIET Manufacturing Business Survey Index (BSI) for the 2nd Quarter of 2026

Author

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  • Sung Wook Hong

    (Korea Institute for Industrial Economics and Trade)

Abstract

In the second quarter (Q2) of 2026, most key indices of the Manufacturing Business Survey Index (BSI) rebounded sharply from an unusually weak first quarter, though many indices remained below the baseline of 100. Business conditions climbed from 79 to 90, while the sales index jumped from 79 to 93, the strongest reading since the second quarter of 2024. By sector, most industrial groups reported stronger sales and export sentiment, particularly the semiconductor and ICT sectors, as well as large companies which surpassed the baseline. Declines were most persistent in the textiles, refined petroleum products, and automobile sectors, where sentiment stayed well below the baseline despite the broader rebound. The outlook for Q3 suggests manufacturers anticipate further improvement, with business conditions projected to reach 97 and sales to reach 99, both edging just under the baseline. Gains are expected to be concentrated in a handful of key sectors, such as wireless communication products, secondary batteries, shipbuilding, and ICT, while the refined petroleum products and textiles sectors are expected to remain the weakest performers.

Suggested Citation

  • Sung Wook Hong, 2026. "KIET Manufacturing Business Survey Index (BSI) for the 2nd Quarter of 2026," Industrial Economic Review 023848, Korea Institute for Industrial Economics and Trade.
  • Handle: RePEc:ris:kieter:023848
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    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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