Korea: Consumer sentiment drops in June
June 27, 2011
In June, the Consumer Sentiment Index (CSI) published by the Bank of Korea fell to 102 points from 104 points in May. The result ends the improvement seen in the last two months, after the index had plunged in March to its lowest level in almost two years. With the June drop, consumer confidence edged closer to the 100-point threshold that separates optimism from pessimism, suggesting a moderation of private consumption in the coming months. June's deterioration was led by more pessimistic expectations on the general economic situation in the next 12 months, with the relative sub-index dropping by 5 points. In addition, households' outlook regarding their income in the short term also deteriorated, leading to more subdued prospects for major purchases going forward.
Author: Armando Ciccarelli, Head of Data Solutions