Amid growing uncertainties on the potential impact of corporate restructuring, South Korea’s large companies projected a negative outlook on business conditions for next month.

The Federation of Korean Industries(FKI) on Monday released a survey on the nation’s top 600 companies in terms of sales, which estimated their business sentiment index (BSI) for June at 94-point-eight.

It is a significant decline from the 101-point-three tallied in May.

A reading below 100 indicates that pessimists outnumber optimists on future economic prospects.

The FKI attributed the pessimistic business sentiment to the chronically weak domestic demand and global economic stagnation, coupled with growing anxiety over the government’s accelerated move toward corporate restructuring.

The surveyed companies also expressed concerns that domestic demand will further weaken in June from May, which saw a one-time growth effect due to the designation of May 6 as a tentative holiday. 

They also worried that exports will further decline in June due to a growing possibility the U.S. Fed will raise its key interest rates in the month.