SEOUL - Sentiment among South Korean businesses rose to the highest in five months due to fiscal and monetary stimulus that saw recovery in private consumption, central bank data showed Friday.

Business sentiment index (BSI) among manufacturers came in at 71 in October, up 3 points from a month earlier, according to the Bank of Korea (BOK). It marked the highest since May when the figure was 73.

The improved business confidence came as the government unveiled various stimulus measures, including an extra budget plan. The BOK cut its policy rate by 25 basis points in June to an all-time low of 1.5 percent to prop up the lackluster domestic demand.

The index for big companies gained 2 points from a month earlier to 74 in October, with the reading for small firms rising 4 points to 66.

Manufacturers picked the faltering domestic demand as the most difficult factor in doing businesses. The BSI below 100 means pessimist outstripped optimists.

The BSI among non-manufacturers stood at 74 in October, up 4 points from the previous month.

Non-manufacturers also cited the weak domestic demand as the most serious factor in operating their businesses.