Factory utilization by small and medium-sized manufacturers in South Korea continued to drop in August, a poll showed Monday, suggesting they have been hit hardest by shrinking exports and local consumption.
  

According to the survey of 3,169 manufacturing companies here by IBK Economic Research Institute, their factory utilization rate came to 70.2 percent in August, down 1.2 percentage points from the same month last year.
  

The private think tank did not offer a rate for large manufacturers, but the figure compares with an utilization rate of 74.7 percent for all manufacturing businesses here in September, released earlier by the state-run Korea Development Institute.
  

Poor domestic consumption has remained a drag on the local economy, especially following the outbreak of Middle East Respiratory Syndrome that started in late May.
  

The disease, which claimed 36 lives, forced people to avoid public venues, leading to sharp cuts in local sales by most manufacturers.
  

The effects of the sales cut, however, have apparently been most severe to smaller companies that are generally more focused on the local market.
  

In August, the capacity utilization rate of medium-sized manufacturers came to 74.3 percent, while that of smaller companies came to 69.3 percent, according to the poll. (Yonhap)