Korea: Consumer confidence jumps to highest level in 18 months
October 28, 2013
The Consumer Sentiment Index (CSI) published by the Bank of Korea jumped to 106 points in October (September: 102 points), exceeding market expectations of a rise to 103 points. The reading remains above the 100-point threshold, which indicates that consumers are more optimistic than pessimistic.
According to the Bank, consumers were more optimistic about their current living standards as well as the overall current economic situation. In addition, households' opinions regarding their future living standards improved over the previous month and they reported a more positive view regarding their income prospects in the coming six months.
FocusEconomics Consensus Forecast panelists expect private consumption to expand 1.8% this year, which is unchanged from last month's forecast. For next year, the panel sees private consumption accelerating to 2.7%, which is also unchanged from last month's estimate.
Author: Ricardo Aceves, Senior Economist