Korea: Consumer confidence slips in July
July 25, 2014
The Composite Consumer Sentiment Index (CCSI) elaborated by the Bank of Korea (BoK) fell from the 107 points observed in June to 105 points in July. The index, nonetheless, is still above the 100-point threshold, which indicates that consumers are more optimistic than pessimistic. The decline in consumer confidence continued to reflect the deadly 16 April Sewol-ho ferry disaster as consumers continued to refrain from entertainment and travel.
According to the BoK, July’s fall showed that consumers were less upbeat 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 deteriorated over the previous month.
Author: Ricardo Aceves, Senior Economist