Korea: Consumer sentiment falls to eight-month low in May
May 28, 2014
The Consumer Sentiment Index (CSI) published by the Bank of Korea (BoK) fell from the 108 points recorded in both March and April to 105 points in May. The reading marked the lowest level since September 2013. Despite the fall, the index is still above the 100-point threshold, which indicates that consumers are more optimistic than pessimistic.
According to the BoK, consumers were less optimistic regarding their current living standards and the country’s overall economic conditions. In addition, households’ views regarding their prospective living standards and the country’s economic prospects deteriorated over the previous month.
Some analysts believe that the fall in consumer confidence in May mainly reflected Korean citizens’ sentiment in reaction to the Sewol-ho ferry disaster that took place on 16 April.
Author: Ricardo Aceves, Senior Economist