Key facts
- South Korean business sentiment declined in June.
- This is the first decline in three months.
- The composite business sentiment index fell to 97.7 in June.
- The index was 98.9 in May.
- The decline was driven by weaker sentiment in the construction sector.
- The decline was also driven by weaker sentiment in the travel sector.
- A Bank of Korea survey reported these findings.
South Korea's business sentiment experienced a downturn in June, declining for the first time in three months. The composite business sentiment index, as reported by the Bank of Korea, dropped to 97.7 in June from 98.9 recorded in May. This decrease indicates a worsening outlook among businesses. The primary drivers behind this decline were identified as weaker sentiment within the construction sector and the travel industry. These sectors appear to be facing increased challenges or reduced optimism, contributing to the overall dip in business confidence across the nation. The Bank of Korea's survey provides a snapshot of the economic mood, and this latest reading suggests a pause or reversal in the positive trend observed in the preceding two months.