A majority of South Korean manufacturers expect their business conditions to improve in the third quarter from three months earlier on a global economic recovery, a poll showed Wednesday.

A survey of about 2,400 manufacturing firms put the business sentiment index (BSI) at 103 for the July-September period, the Korea Chamber of Commerce and Industry (KCCI) said.

The figure is up 4 points from the current quarter and marks the first time in about seven years that the reading has stayed above the benchmark 100.

A reading above 100 means companies expecting improving business conditions outnumber those that anticipate a worsening situation.

The business lobby cited a rebound in exports resulting from the global economic recovery and expectations for rising domestic demand as more Koreans get vaccinated against the coronavirus.

The outlook for exports stood at 112 for the coming quarter, with the forecast for domestic demand coming to 101, according to the survey.

Asia's fourth-largest economy is recovering fast on brisk exports. The country's overseas shipments soared 45.6 percent on-year in May to extend their gains to a seventh consecutive month. (Yonhap)