Korea: Consumer confidence continues to fall in December

The Composite Consumer Sentiment Index (CCSI) published by the Bank of Korea (BoK) inched down from 103 points in November to 102 points in December. December’s reading marked the lowest level since September 2013. Even though the volatile index is still above the 100-point threshold that separates optimism from pessimism, it has been on a downward trend since January 2014.

According to the BoK, December’s reading mainly reflected consumers’ more pessimistic assessments regarding almost all of the subcomponents that comprise the index. Consumer sentiment regarding current domestic conditions was particularly more pessimistic than in the previous month. The only category which was more positive compared to the previous month was the one corresponding to prospective living standards.

FocusEconomics Consensus Forecast panelists expect private consumption to expand 2.8% in 2015, which is down 0.1 percentage points from last month’s forecast. For 2016, the panel sees private consumption accelerating to 2.9%.