Pessimism about the economy among South Korean firms reached a point not seen in almost two years in October.
The Bank of Korea says local companies were especially worried about the spike in international oil prices.
Making matters worse,... the outlook for November is even more grim.
Ko Roon-hee has more.
Business sentiment among Korean firms dropped this month to its lowest level since December 2016... mainly due to manufacturers' concerns about the spike in international oil prices.
According to the Bank of Korea, the business survey index came to just 73 in October… down two points from the month before.
A reading below 100 means there are more pessimists than optimists.
The central bank attributed the fall to especially-low sentiment among the nation's manufacturers.
Their index marked 71 in October,... down two points on month and the lowest in two years.
The biggest drop was in the chemical industry... because a rise in international oil prices made raw materials more expensive.
For instance, Dubai crude, South Korea's benchmark, hit its highest price in almost four years in the first week of October... to trade at more than 80 dollars a barrel.
Sentiment for next month is looking grim as well.
A forecast from the Korea Economic Research Institute puts the business survey index for November at 90-point-4,… which is around 7 points lower than this month.
The institute says this would not only be the second-lowest figure this year …but also the largest on-month drop since June 2016.
Companies said the overall decline of Korea's manufacturing industries resulted in fewer opportunities for investment and employment.
The institute added that the rising trade tensions between the U.S. and China are driving sentiment down... because many Korean companies rely heavily on exports to these two economies.
Ko Roon-hee, Arirang News.
