Korea: Consumer confidence continues to fall in January, reaches lowest level in nearly eight years
January 27, 2016
Korean consumers’ disenchantment with the current political situation in the country persisted at the outset of the year, as shown in the Bank of Korea’s latest Composite Consumer Sentiment Index (CCSI). The indicator fell from 94 in December to 93 in January. This marks the third consecutive month of decline and the lowest level since March 2009. Confidence has moved even further away from 100, which indicates that pessimists outnumber optimists.
The details of the survey showed that consumers were particularly concerned about both their current economic conditions and their future economic situation. Moreover, households disenchantment with the country’s current economic situation continued to grow. Conversely, respondents to the January survey indicated that they are less pessimistic regarding the economy’s future conditions. Consumer confidence related to future household income was unchanged in January relative to the previous month, while sentiment regarding purchases increased.
Author: Ricardo Aceves, Senior Economist