SEOUL, Aug. 27 (Xinhua) -- Sentiment among South Korean businesses over economic conditions recorded the first rebound in three months due to an eased uncertainty over the U.S. tariffs imposition and the supplementary budget plan to bolster domestic demand, central bank data showed Wednesday.
The composite business sentiment index (CBSI) in all industries rose 1.0 point from a month earlier to 91.0 in August, after sliding for the past two months, according to the Bank of Korea (BOK).
The turnaround was attributed to the negotiations between Seoul and Washington about the U.S. reciprocal tariffs as well as export recovery in semiconductors and automobiles.
The extra budget to offer cash handouts, which was aimed at boosting consumer demand, contributed to the improved sentiment among non-manufacturers.
The CBSI among manufacturers advanced 1.4 points to 93.3 in August compared to the previous month, while the index for non-manufacturers gained 0.7 points to 89.4.
The CBSI continued to stay below the long-term average of 100 amid the lingering economic uncertainties.
The result was based on a survey of 1,843 manufacturers and 1,457 non-manufacturers conducted between Aug. 11 and 19.
Manufacturers selected faltering domestic demand, economic uncertainty and export slump as key barriers to doing business, while non-manufacturers picked weaker consumer demand, uncertain economic situation and higher labor cost.
The economic sentiment index (ESI), which reflects sentiment among both businesses and consumers, stood at 94.6 in August, up 1.7 points from a month earlier. ■
