Korean consumer confidence improved in January, but pessimism still prevails

확대

South Korean consumer confidence improved in January for the second month in a row due to lower consumer prices, but the question of whether spending will rise remains uncertain because of pessimism in the economy .

The composite index of the country's consumption climate (CCSI) was 97.5 in January, up 0.6 point from the previous month, according to data released Friday by the Bank of Korea. The reading was the highest since October 99,2 last October.

CCSI measures how consumers perceive the current and future state of the economy from a survey of approximately 2,500 households across the country. The index is referenced at 100 on the average value of 2008-2018. A reading below 100 means that there are more pessimists than optimists.

Of the six variables composing the consumption index, three improved, one decreased and two remained the same.

Consumer badessments of current economic conditions have increased by 3 points to 65 points and those of current household finances by 1 point to 90. The outlook for future economic conditions has increased by 4 points to 76.

Bloated public spending and falling consumer prices have helped boost consumer sentiment, the central bank said.

However, household income prospects fell 1 point to 98, with bleak views coming mainly from self-employed workers and students. Expectations for household finances (91) and consumer spending (109) remained stable.

The index representing the household outlook for future housing prices has been set at 91, the lowest level since the bank began compiling these data in January 2013. A figure below 100 indicates that more people think that house prices will fall instead of rising, over the next year. .

The index peaked at 128 in September and has since continued its downward trend, mainly due to more stringent government measures, including heavy property taxes, to appease the housing overheating market.

Respondents' views on inflation over the past year were down 0.1 percentage points to 2.4%. They further lowered their inflation forecast for the coming year to 2.3%, the lowest level since the first collection of this type of data in July 2008.

By Lee Yu-sup and Kim Hyo-jin

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