South Korean firms' business sentiment for this month fell to a nearly two-year low as the intensifying trade war between the U.S. and China weighs on exporters. 

According to the Bank of Korea on Tuesday, the business survey index(BSI) for October for all industries stood at 73, down two points from the previous month, or the lowest since December 2016. 

The index had been slipping every month from 81 in May and slightly rebounded in September but dropped again this month. 

The BSI of manufacturers fell two points on-month to 71 this month to post a two-year low. The index of exporters slipped by five points to 77, posting the lowest in 22 months.

The index of non-manufacturers remained unchanged at 76.