Korea: Consumer sentiment continues to recover in May
May 26, 2011
In May, the Consumer Sentiment Index (CSI) published by the Bank of Korea rose to 104 points from 100 points in April. The result marks the second consecutive increase in the index after four consecutive monthly drops, corroborating the recovery in economic sentiment after the index had plunged in March to its lowest level in almost two years. With the May reading, consumer confidence edged above the 100-point threshold that separates optimism from pessimism, which bodes well for private consumption over the coming months. May's survey result was led by a more optimistic assessment of the current economic situation, with the relative sub-index improving by 12 points. In addition, households' outlook regarding their income in the short term also recovered, although prospects for major purchases going forward remained unchanged compared to the previous month.
Author: Armando Ciccarelli, Head of Data Solutions