South Korean business sentiment plunges on global trade conflict

A gauge of businesses sentiment over economic situations for South Korea fell to the lowest in 17 months on worry about the global trade conflict.

The business sentiment index (BSI) came in at 75 in July, down 5 points from the previous month,  central bank data showed Tuesday.

According to the Bank of Korea (BOK), the index below 100 indicates pessimists outnumbered optimists.

It was the lowest since February last year, keeping a downward trend for the second consecutive month, reports Xinhua.

The monthly fall was the highest in three years as concerns mounted over the global trade war, which was triggered by the US protectionist moves.

The reduced global trade, coming from the US protectionist moves, was forecast to hit hard emerging economies, especially South Korea which heavily depends on trade for growth.

The BSI for manufacturers tumbled 6 points over the month to 74 in July, marking the biggest monthly fall in three years.

The index for local automakers declined 7 points on worry about the US imposition of heavy tariffs on car imports.

The BSI for non-manufacturers shrank 4 points over the month to 76 in July, posting the lowest since last October on less working days, caused by the start of a summer vacation season.