Korea: Consumer confidence plunges to over seven-year low in December
December 27, 2016
Korean consumers’ disenchantment with the current political situation in the country persisted in December, as demonstrated by the latest Bank of Korea’s Composite Consumer Sentiment Index (CCSI). The indicator declined from 96 in November to 94 in December, falling to the lowest level in seven and half years. A reading below 100 indicates that pessimists outnumber optimists.
The details of the survey showed that consumers were particularly pessimistic about the country’s current economic conditions, with this component falling substantially from the previous month, indicating that consumers perceive a slowdown in economic momentum. Also, consumers are anticipating a weaker economic outlook in the wake of the current political crisis. Regarding their current living standards, consumers indicated that they were only slightly worse off in December compared to November, which suggests that the political turmoil has not yet dented society’s living standards.
Author: Ricardo Aceves, Senior Economist