The business outlook by small and medium enterprises for August fell to an over three-year low, reflecting persistent global economic uncertainties, a poll showed Thursday.

The Korea Federation of Small and Medium Business survey on 1,354 businesses showed the small business health index dropping to 80.8 for next month, down 4 percentage points from July and the lowest since 77.4 tallied in April 2009.

An index reading below 100 means pessimists outnumber optimists.

“The drop is due to problems facing the European Union that are affecting exports of such products as ships and information technology devices,” the federation said. “Poor showings by local construction companies are contributing to pessimistic predictions.”

The index for both light and heavy industries fell to 78.2 and 83.2, respectively, compared with 81.9 and 87.6 forecast for July.

Of the 22 industries checked, 18 including autos, electronics parts and communication equipment showed drops in index numbers from the month before.

The federation, meanwhile, said 60.9 percent of SMEs polled said sluggish domestic demand was the main source of concern, with 37.1 percent citing rising costs as a challenge in running their business. (Yonhap News)