South Korea’s major companies are expecting slightly sluggish business conditions in April due to concerns over a slowdown of economic growth in China and the U.S. Federal Reserve’s tapering of its bond-buying program, a poll showed Thursday.

The Business Survey Index came to 99.5 for next month, down from 104.4 forecast for March, according to the poll of the largest 600 companies by sales conducted by the Federation of Korean Industries.

A BSI reading below the benchmark 100 mark means pessimists outnumber optimists.

“Domestic numbers in regard to hiring, consumption and industrial production have all improved, but external factors that can affect trade are posing challenges and seems to have caused the BSI to fall,” said Kim Yong-ok, the head of the FKI’s economic policy team.

He said worries that the world’s largest economy may hike up interests rates earlier than previously anticipated seems to be taking its toll on the overall business sentiment.

“To overcome such worries it is imperative that the government takes concrete steps to get rid of red tape cited for holding up investment and business activity,” the official said.

The lobbying group, representing the interests of the country’s largest business groups, added that the latest poll showed the reading for domestic consumption standing at a solid 104 for next month, with exports and investment reaching 103.5 and 101.1, respectively.

Cash liquidity and employment numbers stood at 99.8 and 97.3, with inventory conditions hitting 104.7. (Yonhap)