The business survey index (BSI) in all industries fell 1 point over the month to 68 in February after peaking at 73 in September last year, according to the Bank of Korea (BOK).
It has marked the lowest in nearly three and a half years since September 2020 as economic uncertainties lingered such as the faltering housing market and the sluggish private consumption.
The BSI among non-manufacturers, including construction companies, stayed low at 67 in February, while the index for manufacturers slipped 1 point to 70.
The index below 100 indicates pessimists outnumbering optimists. It was based on a survey of 1,815 manufacturers and 1,490 non-manufacturers conducted between Feb. 5 and Feb. 14.
Manufacturers selected sluggish domestic demand, economic uncertainty and higher labor costs as key barriers to doing business, while non-manufacturers picked domestic demand slump, uncertain economic situations and higher labor costs.
The economic sentiment index (ESI), which reflects sentiment among both businesses and consumers, stood at 93.3 in February, up 1.8 points from the previous month.
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