The July business sentiment index perceived by small and medium-sized enterprises (SMEs) was surveyed to be 76.6, an increase of 1.6 points from the previous month. However, compared to last July (78), it remains at a low level.
The Korea Federation of Small and Medium Enterprises conducted a survey titled 'July 2025 SME Business Outlook Survey' targeting 3,086 small and medium enterprises from June 11 to 17. The survey found the July business outlook index (SBHI) to be 76.6, an increase of 1.6 points from the previous month. However, compared to last July, it decreased by 1.4 points.
The small and medium enterprise business outlook index is quantified based on survey responses about the business conditions and outlook perceived by SMEs. A score above 100 indicates a positive view of the economy among SMEs, while a score below 100 signifies a negative perspective.
The manufacturing sector's July business outlook is 78.9, down 0.9 points from the previous month, while the non-manufacturing sector shows an increase of 2.7 points to 75.7.
By industry, in the manufacturing sector, seven industries, including ▲medical materials and pharmaceuticals (84.6→93.9, 9.3 points↑) and ▲rubber and plastic products (77.7→83.7, 6.0 points↑), showed an increase compared to the previous month. In contrast, 16 industries, including ▲medical, precision, optical equipment, and clocks (84.4→74.7, 9.7 points↓) and ▲beverages (98.7→91.5, 7.2 points↓), declined.
In the non-manufacturing sector, construction (66.2→71.5) increased by 5.3 points from the previous month, and the service industry (74.4→76.5) rose by 2.1 points. Within the service sector, six industries, including ▲real estate (75.7→80.6, 4.9 points↑) and ▲wholesale and retail (70.8→74.2, 3.4 points↑), showed an increase compared to the previous month, while four sectors, including ▲arts, sports, and leisure-related services (86.3→74.0, 12.3 points↓) and ▲transportation (79.6→71.7, 7.9 points↓), decreased.
By item, domestic sales (74.9→74.7) declined compared to the previous month, while ▲financial conditions (74.9→76.3), ▲exports (86.1→87.1), and ▲operating profit (72.6→73.4) increased. The employment trend, which is in reverse flow (96.3→96.5), is projected to worsen compared to the previous month.
The major difficulties faced by SMEs in June were due to 'poor sales (product sales)' (61.4%), followed by ▲rising labor costs (33.3%), ▲increased prices of materials and supplies (27.5%), and ▲intensified competition among companies (26.7%).
In May 2025, the average operating rate for small manufacturing corporations was 71.0%, an increase of 0.3 percentage points from the previous month but a decline of 2.1 percentage points compared to the same month last year. By company size, small corporations (67.0%→67.1%) increased by 0.1 percentage points from the previous month, while medium corporations (74.8%→75.4%) rose by 0.6 percentage points.