Korea: Consumer confidence rebounds in June
June 25, 2014
The Composite Consumer Sentiment Index (CCSI) elaborated by the Bank of Korea (BoK) bounced back from the 105 points registered in May and rose to 107 points in June. As a result of the increase, the index moved further above the 100-point threshold, which indicates that consumers are more optimistic than pessimistic. The rebound followed a fall in consumer confidence to the lowest level in eight months that resulted from the negative reaction to the 16 April Sewol-ho ferry disaster.
According to the Central Bank, June’s improvement showed that consumers were more optimistic regarding both their current living standards and the country’s overall economic conditions. In addition, households’ views on their prospective living standards and the country’s economic prospects improved over the previous month.
Author: Ricardo Aceves, Senior Economist