Korea: Consumer confidence reaches highest level in nearly three years
January 27, 2014
The Consumer Sentiment Index (CSI) published by the Bank of Korea rose to 109 points in January from 107 points in December. The reading marks the highest value since February 2011. The index is still above the 100-point threshold, which indicates that consumers are more optimistic than pessimistic. According to the Central Bank, consumers' view regarding their current economic situations as well as their future living standards improved compared to the previous month. In addition, households were more optimistic regarding the country's economic prospects in the next six months. Moreover, their opinions on prospective purchases of big-ticket items improved compared to the previous month. FocusEconomics Consensus Forecast panelists expect private consumption to expand 2.8% in 2014, which is unchanged from last month's forecast. For 2015, the panel sees private consumption accelerating to 3.1%.
Author: Ricardo Aceves, Senior Economist