A majority of companies in South Korea are pessimistic about business outlooks for next month due to worries over the Chinese economy and a possible rate hike in the U.S., a poll showed Thursday.

According to the survey conducted on 600 South Korean companies by the Federation of Korean Industries, the business survey index for November stood at 95.9.

A reading below 100 means companies that are pessimistic about business conditions down the road outnumber optimists.

After peaking at 103.7 in March, the figure had been staying below the benchmark 100 until September. It rose above 100 for October but turned down again in the latest poll.

The FKI attributed the downturn mainly to lingering worries over the slowing economic growth in China and negative impact from a possible U.S. interest rate hike.

Businesses were pessimistic in almost every category including domestic demand, exports, investment, profitability and employment, the poll showed.

"Though economic conditions are improving recently, centering on domestic demand, the overall outlooks for November have worsened slightly, affected by external factors," Hong Sung-il, a finance strategy director at FKI, said.

"In order to keep alive the growth recovery trend seen in the third quarter, it is necessary for companies to focus on exports and investment. Such efforts to ratify a free trade deal with China and pursue labor reform are also required for a business sentiment rebound," he added. (Yonhap)