A survey shows that business sentiment among domestic firms dropped to the lowest level in one and a half years amid high inflation, high interest rates and high exchange rates.

According to the Federation of Korean Industries(FKI), a business lobbying group, on Wednesday, the projected business survey index(BSI) of the top 600 companies by sales for the month of July stood at 92-point-six points.

It is the lowest level since January of last year, when the index was tallied at 91-point-seven points. The projected BSI remains below 100 for the fourth consecutive month since registering 99-point-one points in April. A reading above 100 indicates that companies expecting an improved economy the following month outnumber those who see otherwise.

By sector, estimated business survey indices for manufacturing and non-manufacturing for next month both stayed below 100 at 90-point-four points and 95-point-one points, respectively.

Only employment exceeded 100 among major projected indices compiled by the FKI at 103-point-nine points while the index for investment also plunged below 100 for the first time in 15 months.