South korea: South Korea's business sentiment deteriorated for the second straight month in July amid uncertainties stemming from the United States' aggressive tariff scheme, a central bank survey showed Thursday. The Composite Business Sentiment Index (CBSI) for all industries stood at 90.0 in July, down 0.2 point from the previous month, according to data from the Bank of Korea (BOK).
According to Yonhap News Agency, the index followed a 0.5 point decline in June, when it turned negative for the first time since February. The CBSI measures corporate outlooks on overall business conditions, with a reading below 100 indicating that pessimists outnumber optimists. The CBSI among manufacturers fell 2.5 points from the previous month to 91.9 in July, while the sentiment among non-manufacturers advanced 1.3 points to 88.7.
The outlook for all industries for August shed 1.0 point to 88.4, the survey showed. "Sentiment in the manufacturing sector declined due to tariff-related uncertainties and the expanded imposition of item-specific tariffs by the U.S., while conditions in the non-manufacturing sector improved thanks to rising demand for data and artificial intelligence system development, as well as increased electricity usage amid heat waves," a BOK official said.
South Korea is set for last-minute trade talks with the U.S., with just under 10 days remaining before U.S. President Donald Trump's Aug. 1 deadline for negotiations. The survey was conducted earlier this month and included 3,293 companies, among them 1,834 manufacturers, the BOK said.