Pessimism levels among South Korean firms reached a point not seen in a year-and-a-half in August.
The central bank says local firms are worried about Washington's new import restrictions among other things.
Ko Roon-hee reports.
South Korea's overall business sentiment this month marked its lowest point since February last year,… mainly due to concerns over import restrictions by the U.S. and low consumer sentiment.
According to the Bank of Korea on Thursday,…the business survey index marked 74 in August,… down one-point from the previous month.
A reading below 100 means there are more pessimists than optimists on the local economy.
Breaking it down by industry, confidence among metal manufacturers slumped by five points in August from the previous month.
The central bank attributed the fall to U.S. restrictions on imports of South Korean steel.
In April, Washington confirmed that Seoul would be granted an exemption from steel tariffs,... but set the import quota for South Korean steel at 70 percent of Korea's average exports from 2015 to 2017.
BSI among wholesale and retail businesses also fell by four points during the same period, due to low consumer sentiment.
The sentiment forecast for next month is looking grim as well.
The Korea Economic Research Institute's report shows, the business survey index outlook for September marked 92-point-two…down two-point-two from the same period last year.
The institute attributed the fall to the ongoing tariff spat between the world's two largest economies... as well as low domestic demand in Korea.
The BSI outlook is low…despite the expected increased demand during the country's Chuseok holiday next month.
Ko Roon-hee, Arirang News.
