Business sentiment for July pessimistic over export uncertainties

SEOUL, South Korea's business sentiment index remained pessimistic for July due to export uncertainties, a poll showed Tuesday. The business survey index (BSI) for the country's top 600 companies by sales stood at 96.8 for next month, according to the monthly poll by the Federation of Korean Industries (FKI). A reading below 100 means pessimists outnumber optimists, while a figure above the benchmark means the opposite. The index has remained below 100 since April 2022. The BSI for the manufacturing industry came to 88.5 for July, dropping 7.4 points from the previous month. The FKI said many exporters feared an anticipated slowdown in the growth of major export countries, including the United States and China, in the second half of the year. The index for the nonmanufacturing sector, however, rose 10.3 points to 105.5, as related businesses looked forward to an expected seasonal boost from the summer vacation period. A FKI official said it was necessary to refrain from ongoing legislative discussions a t the National Assembly that could dampen business sentiment, noting that discussions, such as those over the revision of the Labor Relations Adjustment Act could discourage business sentiment. Source: Yonhap News Agency