Business sentiment worsened in January due to the sluggish construction industry amid project financing woes.

According to the Bank of Korea on Thursday, the business survey index(BSI) for all industries stood at 69 in January, down one from the previous month to post the lowest figure since February of last year.

The index stayed at 70 from October to December last year before falling this month.

A reading below 100 means pessimists outnumber optimists.

The BSI for manufacturers rose one point on-month to 71 in January, the highest since July of last year, showing a steady rise since falling to 67 last August.

The index for non-manufacturing industries, which includes restaurants, wholesalers and retail businesses, dropped three points on-month to 67, the lowest since September 2020.

Meanwhile, local firms' business outlook for February marked 69, up one point from the previous month.