IANS | 31 Jul, 2012
South Korea's business sentiment dropped this month due to economic uncertainties stemming from Europe's debt crisis, a report by the central bank showed Monday.
The monthly business survey index (BSI), which gauges local manufacturers' assessment of current business conditions, tumbled 11 points on-month to 71 in July, keeping its downward trend for the third straight month, according to the Bank of Korea (BOK). The seasonally-adjusted figure plunged 10 points to 68 over the same period, reported Xinhua.
The BSI for August, measuring manufacturers' outlook on business conditions for the upcoming month, dropped 11 points on-month to 70, posting the third straight month of decline.
The worsening sentiment over economic conditions came as concerns remained over the European fiscal crisis. Spain's government bond yield continued to surge to a new record high recently, fuelling expectations that the country may have to seek a full-scale bailout.
Local manufacturers listed uncertain economic conditions, weak domestic demand and weak exports as major difficulties in doing business.