Warning bells are ringing for the local economy... as South Korea's business sentiment crumbled even further this month.<br />It shows... local firms are pessimistic about the current economic conditions.<br />Kim Da-mi reports.<br />South Korean companies' business sentiment for July fell slightly compared to the previous month.<br />According to the Bank of Korea on Tuesday, the business survey index for all industries recorded 73, down a single point on-month.<br />The figure for July is far below 100... meaning there are many more pessimists than optimists on the local economy.<br />By sector, electronics and communication rose four points to 83,...thanks to a bump in shipments of expensive smartphones and higher demand for IT parts,... mainly due to seasonal reasons.<br />However, the automobile sector plunged seven points to 68 due to falling exports and fewer working days.<br />The business survey index in the non-manufacturing sector for July was 72, down a couple of points from the previous month.<br />Construction slumped to 64...down two points from the previous month and science and technology plummeted 12 points to 75 because of seasonal reasons.<br />The central bank said Japan's export restrictions did not directly affect sentiment in July.<br />However, as the outlook for August also fell by two points to 74,... experts point to local firms' concerns over falling exports prompted by Tokyo's export curbs.<br />An earlier report on business sentiment in the nation was lingering at its lowest point in more than a decade.<br />The prolonged U.S.-China trade war and Japan's export restrictions are being cited as reasons for the pessimism.<br />As sentiment is much lower than previous months,...experts say the government has to come up with policies to encourage companies to invest and respond more strongly to internal and external risks.<br />Kim Da-mi, Arirang News.<br />
