Seoul: South Korea's business sentiment took a downturn for the first time in four months this June, driven by slowing exports and escalating tensions in the Middle East, as reported by a central bank survey on Thursday. The Composite Business Sentiment Index (CBSI) for all industries registered at 90.2 in June, experiencing a 0.5 point drop from the previous month, according to data from the Bank of Korea (BOK).
According to Yonhap News Agency, this marks the first decline since February. The CBSI, which gauges corporate outlooks on overall business conditions, indicates that pessimists outnumber optimists when it falls below 100. Specifically, the index for manufacturers saw a 0.3 point decrease to 94.4 in June, while sentiment among non-manufacturers fell by 0.7 point to 87.4.
"The decline in sentiment reflects rising U.S. tariff rates on steel, aluminum, and related products, as well as growing geopolitical risks stemming from conflicts in the Middle East," stated BOK official Lee Hye-young during a press briefing. The outlook for July slightly decreased by 0.1 point to 89.4.
Lee further emphasized the need to closely monitor the progress of tariff negotiations with the United States and the timing of supplementary budget execution. The survey, conducted earlier this month, included responses from 3,254 companies, of which 1,839 were manufacturers, according to the BOK.