Pessimism about the economy among South Korean firms reached a point not seen in almost two years in October. <br />The Bank of Korea says local companies were especially worried about the spike in international oil prices.<br />Making matters worse,... the outlook for November is even more grim.<br />Ko Roon-hee has more. <br />Business sentiment among Korean firms dropped this month to its lowest level since December 2016... mainly due to manufacturers' concerns about the spike in international oil prices.<br /><br />According to the Bank of Korea, the business survey index came to just 73 in October… down two points from the month before. <br />A reading below 100 means there are more pessimists than optimists. <br /><br />The central bank attributed the fall to especially-low sentiment among the nation's manufacturers.<br />Their index marked 71 in October,... down two points on month and the lowest in two years.<br /><br />The biggest drop was in the chemical industry... because a rise in international oil prices made raw materials more expensive.<br />For instance, Dubai crude, South Korea's benchmark, hit its highest price in almost four years in the first week of October... to trade at more than 80 dollars a barrel.<br /><br />Sentiment for next month is looking grim as well. <br />A forecast from the Korea Economic Research Institute puts the business survey index for November at 90-point-4,… which is around 7 points lower than this month.<br />The institute says this would not only be the second-lowest figure this year …but also the largest on-month drop since June 2016.<br /><br />Companies said the overall decline of Korea's manufacturing industries resulted in fewer opportunities for investment and employment.<br />The institute added that the rising trade tensions between the U.S. and China are driving sentiment down... because many Korean companies rely heavily on exports to these two economies.<br />Ko Roon-hee, Arirang News. <br />
