Business sentiment worsened for a second month in October amid growing concerns of an economic slowdown.

According to the Bank of Korea on Wednesday, the business survey index(BSI) for all industries dropped by two points on-month to stand at 76 for October, marking the lowest in 20 months since February 2021 when it also posted 76.

A reading below 100 means pessimists outnumber optimists.

The October figure marks the second straight month of decline after rising to 80 in July and 81 in August.

The central bank attributed the drop to concerns about an economic slowdown due to interest rate hikes in the U.S. and other major countries amid soaring prices.

The BSI for manufacturing dropped two points on-month to hit 72 in October, the lowest in 25 months since September 2020, while the index for non-manufacturing such as restaurants, wholesalers and retail businesses also dropped by two points to 79, the lowest since September 2021.

Meanwhile, local firms' business outlook for November slipped by three points on-month, coming in at 76.