Sentiment among South Korean businesses fell for the second consecutive month due to cheaper crude oil, central bank data showed Thursday.
The business sentiment index (BSI) for manufacturers stood at 78 in June, down 4 points from the previous month, according to the Bank of Korea (BOK). The index below 100 means pessimists outnumbered optimists.
It was based on a survey of 1,762 manufacturers and 1,120 non-manufacturers conducted on June 15-22.
The figure gained ground from January to April thanks to exports recovery, but it began to decline from May as cheaper crude oil lowered oil product-related exports. Consumers refrained from spending money amid massive household debts.
The debt-serving burden was expected to grow as pressures increased on the BOK to hike rates following the U.S. Federal Reserve's rate increases.
The BSI for exporters shed 3 points over the month to 85 in June, with the figure for domestic demand-intensive businesses sliding 4 points to 74. Manufacturers picked weak domestic demand, economic uncertainties, exports slump and intense competition as their difficulties in doing business.
The BSI for non-manufacturers came in at 75 in June, down 4 points from a month earlier. It marked the first fall in four months.
The government unveiled measures to crack down on speculative investment in real estate earlier this month, pulling down the sentiment among construction companies that declined 6 points in June.
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