Data from the Bank of Korea show that businesses were more pessimistic in July than they have been in almost a year and a half.<br />The BOK attributed the plunge in business sentiment to concerns over the trade conflict between the U.S. and China.<br />And the outlook for August is gloomy as well.<br />Our Ko Roon-hee reports. <br />Business sentiment among South Korean firms dropped to its lowest level in 17 months.<br />The Bank of Korea announced on Tuesday... <br /> that the business survey index came to just 75 in July…down five points from the previous month. <br />A reading below 100 means there are more pessimists than optimists on the local economy. <br /><br /> Meanwhile, confidence among the nation's manufacturers also fell by 6 points in July-- the first drop in the last three months.<br /><br /> The central bank attributed the sharp fall to the rising trade uncertainties between the United States and China. <br />Many South Korean businesses worry about the impact of the trade tensions because they sell a lot of intermediary goods to China….that are made into final goods and exported to the U.S. <br />The report also highlighted the uncertainties in the automobile industry… amid fears that the United States could impose tariffs on car imports. <br /><br /> The outlook for next month among manufacturers also remains dim… at just 73 on the BSI. <br />That's 7 points lower than the previous month's forecast. <br /><br /> Sentiment among non-manufacturers in July was also gloomy…at 76 on the index…which is four points lower than the previous month. <br />The drop was mainly observed in wholesale and retail businesses. <br />The Bank of Korea said this is because of low domestic demand during the summer vacation season. <br />Ko Roon-hee, Arirang News. <br />
