Korea: Consumer confidence wanes in September
September 26, 2013
The Consumer Sentiment Index (CSI) published by the Bank of Korea fell to 102 points in September (August: 105 points), undershooting market expectations that saw the index remaining stable at 105 points for a fourth consecutive month. The reading, which nonetheless sits above the 100-point threshold, indicates that consumers are still more optimistic than pessimistic.
According to the Bank, consumers were less optimistic about their current living standards and the overall current economic situation. In addition, households reported a more pessimistic view of their future living standards, as well as a more negative opinion on their income prospects in the coming six months.
FocusEconomics Consensus Forecast panelists expect private consumption to expand 2.1% this year, which is down 0.2 percentage points from last month's forecast. For next year, the panel sees private consumption accelerating to 2.9%.
Author: Ricardo Aceves, Senior Economist