Confidence among S. Korean small firms remains dismal for MERS outbreak

Confidence among South Korean small businesses remained dismal on concerns that the outbreak of Middle East Respiratory Syndrome (MERS) would continue to dent domestic demand for the time being, a business lobby group data showed Tuesday.

The Small Business Health Index (SBHI) for August, which reflects small firms' outlook for business conditions the next month, declined 2.1 points from a month earlier to 79.4, the lowest in seven months, according to the Korea Federation of Small and Medium Business.

The result was based on a survey of 3,150 manufacturers and non- manufacturers from July 15 to 21. The reading below 100 means pessimist outnumbered optimists.

The business sentiment kept a downward trend for three months from June when the MERS outbreak peaked and hit hardest the already lackluster domestic demand.

The South Korean government declared a de-facto end of the MERS crisis as no new case of MERS infection was reported for more than three weeks. The total contagion number has been unchanged at 186 since July 6.

Despite the declaration, small firms are still worried about the weak consumption. Consumers refrained from outside activities, especially in June, for contagion fears, but public places began to be filled with people from the middle of this month.

The SBHI among manufacturers dipped 3.8 points from a month earlier to 80.4 in August, with the figure for non-manufacturers falling 0.8 points to 79.0. Endi