Korea: Consumer sentiment continues to improve
May 25, 2012
In May, the Consumer Sentiment Index (CSI) published by the Bank of Korea rose to 105 points from 104 points in April, marking the highest level since February 2011. With the monthly improvement, the index moved further above the 100-point threshold that separates optimistic from pessimistic territory. In comparison to April, households were less pessimistic about their current and future domestic economic conditions. That said, households' expectations regarding their short-term income remained unchanged and spending plans weakened slightly compared to the previous month. The May rise in consumer confidence implies better prospects for private consumption going forward.