Construction firms' business sentiment has soured partly due to the lingering impact of the government’s intensive antispeculation real estate measures and rising interest rates.

The Construction Economy Research Institute of Korea on Monday reported that the construction business survey index(CBSI) stood at 78-point-two last month, one-point-three points lower than a month earlier.

It follows modest growth in the two previous months.

The institute assessed that the government’s announcement in August that it would restrict speculative property investments is still keeping many in the construction industry on edge. The Bank of Korea’s recent decision to raise the benchmark rate to one-and-a-half percent also stoked concerns.

A CBSI reading below the benchmark 100 means that pessimists outnumber optimists.