Korea: Consumer sentiment drops
June 26, 2012
In June, the Consumer Sentiment Index (CSI) published by the Bank of Korea plunged to 101 points from 105 points in May, the lowest level in three months, as the European debt crisis intensifies. Despite the monthly deterioration, the index remains above the 100-point threshold that separates optimistic from pessimistic territory. Compared with May, households were substantially more pessimistic about both their current and future domestic economic conditions. Accordingly, households' expectations about their short-term income and spending plans deteriorated.