Business sentiment worsened in July due to concerns about soaring prices and an economic slowdown.

According to the Bank of Korea on Thursday, the business survey index(BSI) for all industries stood at 80 for July, down two points from the previous month. It marks the lowest since February of last year, when it posted 76.

A reading below 100 means pessimists outnumber optimists.

The index fell for the second straight month after staying at 86 in April and in May. The central bank attributed the drop to concerns about rising inflation and a slowing economy.

The BSI for manufacturers dropped three points on-month to hit 80 in July. The BSI for non-manufacturers, which includes restaurants, wholesalers and retail businesses, also slipped by two points to 80.

Meanwhile, local firms' business outlook for August fell by three points on-month, coming in at 79.