The mood of South Korea's business sector ebbed slightly in February, but outlooks improved, reported the Bank of Korea on Friday.

South Korea's composite business sentiment index for all industries in February logged at 85.3, down from 85.9 in January, and striking the lowest level in four years, reported the Bank of Korea.

Readings above 100 point on the index point to optimism, while below suggest pessimism.

However, the February composite index outlook for March rose to 88.0 from 85.4 in the previous month, added the central bank.

In the manufacturing sector, the sentiment index for February posted at 90.1, up from 89.0 in January, while the outlook index for march rose to 91.1 from 89.1, reported the Bank of Korea.

In the non-manufacturing sector, the sentiment index for February logged at 81.7, down from 83.6 in January. However, the outlook index rose to 85.8 from 82.6 in the previous month, reported the Bank of Korea.

Additionally, South Korea's economic sentiment index, a composite of the business and consumer sentiments surveys, rose to 90.2 in February, up from 86.7 in January, reported the central bank.

To produce the monthly report on business sector sentiment, the Bank of Korea surveys more than 3,500 private-sector enterprises on a total of 15 different items, including business conditions, sales and profitability, between February 6 and February 13.

Whether South Korea's business mood will improve in 2025 is open to question.

In January the Bank of Korea forecast that the nation's gross domestic product (GDP) would expand by between a modest 1.6% and 1.7% in 2025, lower than its 1.9% forecast made in November, and less than the 2% GDP expansion logged in 2024.