Korea: Consumer sentiment retreats in December
December 27, 2011
In December, the Consumer Sentiment Index (CSI) published by the Bank of Korea dropped to 99 points from November's 103 points, crossing below the 100-point threshold that separates optimistic from pessimistic territory and erasing the gains from November. In comparison to November, households were more pessimistic regarding both current domestic economic conditions and their current living standards. Households' expectations regarding their short-term income also deteriorated compared to November, which resulted in decreasing prospects for major purchases compared to the previous month. The December drop in consumer confidence implies deteriorating prospects for private consumption going forward.