Business confidence in South Korea worsens after ferry disaster

Business confidence among South Korean manufacturers worsened for two months in a row after the deadly ferry sinking disaster, central bank data showed Monday.
The manufacturing business survey index (BSI) for June, which gauge business conditions among manufacturers, stood at 77, down 2 points from a month earlier, according to the Bank of Korea (BOK).
The business sentiment continue to rise from 76 in January to 82 in April, but it turned downward in May before falling to 77 in June. The figure below 100 indicates pessimists outnumbered optimists.
The downward trend came after the ferry Sewol capsized and sank off the southwestern coast and left more than 300 people, mostly high school students, dead or missing.
Local manufacturers picked fragile demand in the domestic market, stronger currency against the U.S. dollar and sluggish growth in emerging economies as difficulties in doing businesses.
Business confidence among non-manufacturers, which were hit harder by the ferry disaster, was 66 in June, down 3 points from a month earlier.
Following the ferry disaster, consumers refrained from entertainment and travel, with a negative effect on sales among service companies.
The BSI was based on survey responses from 1,502 manufacturers and 1,031 non-manufacturers conducted by the relevant South Korean authorities between June 16 and 23.