Warning bells are ringing for the local economy... as South Korea's business sentiment crumbled even further this month.
It shows... local firms are pessimistic about the current economic conditions.
Kim Da-mi reports.
South Korean companies' business sentiment for July fell slightly compared to the previous month.
According to the Bank of Korea on Tuesday, the business survey index for all industries recorded 73, down a single point on-month.
The figure for July is far below 100... meaning there are many more pessimists than optimists on the local economy.
By sector, electronics and communication rose four points to 83,...thanks to a bump in shipments of expensive smartphones and higher demand for IT parts,... mainly due to seasonal reasons.
However, the automobile sector plunged seven points to 68 due to falling exports and fewer working days.
The business survey index in the non-manufacturing sector for July was 72, down a couple of points from the previous month.
Construction slumped to 64...down two points from the previous month and science and technology plummeted 12 points to 75 because of seasonal reasons.
The central bank said Japan's export restrictions did not directly affect sentiment in July.
However, as the outlook for August also fell by two points to 74,... experts point to local firms' concerns over falling exports prompted by Tokyo's export curbs.
An earlier report on business sentiment in the nation was lingering at its lowest point in more than a decade.
The prolonged U.S.-China trade war and Japan's export restrictions are being cited as reasons for the pessimism.
As sentiment is much lower than previous months,...experts say the government has to come up with policies to encourage companies to invest and respond more strongly to internal and external risks.
Kim Da-mi, Arirang News.
