Seoul, Jan 12 (IANS): South Korea's manufacturing sector, including semiconductors and the auto industry, is expected to suffer a decrease in sales in the first quarter amid heightened economic uncertainties, data showed on Sunday.

The business survey index (BSI) for the country's top 1,500 manufacturing companies by sales stood at 88 for the January-March period, down from 95 for the fourth quarter of 2024, according to the data from the Korea Institute for Industrial Economics & Trade (KIET).

A reading below 100 means pessimists outnumber optimists, while a figure above the benchmark means the opposite. The index has remained below the benchmark since the third quarter of last year, reports Yonhap news agency.

The BSI for exports, facility investment, employment and financial condition all came below 100 at 91, 95, 96 and 85, respectively.

By sector, the BSI for the wireless communications industry dropped sharply to 92 for the first quarter from 112 three months earlier.

The corresponding figure for the bio industry also decreased to 98 from 103, and that of the secondary battery sector dipped to 92 from 100 over the cited period.

The semiconductor industry also saw its BSI pull back to 88 from 92, and the sales outlook for the car manufacturing industry fell to 92 from 94.

Other major industries also reported negative sales outlooks for this quarter, with the BSI for shipbuilding, oil refinery and steelmaking coming to 95, 85 and 74, respectively.

In a separate survey by the KIET, the manufacturing firms cited sluggish domestic demand, global economic uncertainties, weakening of the Korean won and higher production costs as negative factors affecting their business.

More than 40 per cent of the companies also said they are concerned the incoming Donald Trump administration's trade policies could lead to higher inflation and interest rates here.