Business sentiment fails to buck 2-year pessimism trend in March

The entrance of the Federation of Korean Industries in Seoul [Yonhap]

Korea’s business sentiment remained pessimistic for the 24th consecutive month in March, dragged down by non-manufacturing industries, a poll showed on Tuesday.

The business survey index (BSI) for the country's top 600 companies by sales stood at 97 for March, up 4.7 points from February's, according to the monthly poll by the Federation of Korean Industries (FKI).

A reading below 100 means pessimists outnumber optimists, while a figure above the benchmark means the opposite. The index has remained below 100 for 24 consecutive months.

The BSI for the manufacturing industry, however, came to 100.5 for March, surpassing the 100-point mark for the first time in exactly two years, while the index for the non-manufacturing sector failed to replicate the milestone as it remained at 93.5.

Of the manufacturing sector, industries that recorded optimistic sentiment included machinery, automobiles, petroleum and chemical sectors, the survey showed.

The index of 93.5 for non-manufacturing industries stayed pessimistic for the third straight month after reporting 100.5 last December.

The FKI, the lobby for the country's family-controlled conglomerates, said it found positivity with the improved expectations in the manufacturing sector, but stressed the need for more efforts to revitalize business sentiment as it still remains sluggish overall.

BY JIN MIN-JI, YONHAP [jin.minji@joongang.co.kr]