Business sentiment worsened in July on the back of a global economic slowdown amid continued economic uncertainties.

According to the Bank of Korea on Thursday, the business survey index(BSI) for all industries stood at 74 the month, down two points from June, to indicate that pessimists outnumber optimists with a reading below 100.

The BSI for manufacturers fell one point to 72 after primary metal and electric equipment industries saw a drop in demand.

The index for non-manufacturing industries, which includes restaurants, wholesalers and retail businesses, also slipped by one point on-month to 76 after rental service, information and communications, and transportation warehouse industries experienced worsened business.

As the biggest obstacles, manufacturing industries cited uncertain economic conditions, a slump in domestic demand and in exports while non-manufacturing businesses picked uncertain economic conditions, a surge in personnel expenses and a workforce shortage.