Business sentiment improved for the first time in seven months in March.

According to the Bank of Korea(BOK) on Thursday, the business survey index(BSI) for all industries posted 72 for March, up three from the previous month.

A reading below 100 means pessimists outnumber optimists.

The BOK said that the rise in the BSI is attributed to an increase in demand in manufacturing industries such as shipbuilding and automobiles as well as expectations of product price hikes despite persistent economic uncertainties.

The BSI for manufacturers jumped seven points on-month to 70 in March, while the index for non-manufacturing sectors also rose by one point on-month to 74.

Meanwhile, local firms' business outlook for April rose by two points on-month, coming in at 73.