The business survey index (BSI) in all industries edged up 1 point over the month to 69 in March, according to the Bank of Korea (BOK).
Despite the slight increase, the index hovered below the long-term average of 77 as economic uncertainties lingered such as the faltering housing market and the sluggish private consumption.
The BSI among non-manufacturers, including construction companies, added one point to 68 in March compared with the previous month, while the index for manufacturers rose one point to 71.
The index below 100 indicates pessimists outnumbering optimists. It was based on a survey of 1,813 manufacturers and 1,457 non-manufacturers conducted between March 12 and March 19.
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 92.2 in March, down 1.1 points from the previous month.
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