Consumer confidence drops sharply in South Korea in November
The Composite Consumer Sentiment Index (CCSI) published by the Bank of Korea (BoK) stood at 96 points in November, the lowest level in over seven years.
November’s result was below the 100-point threshold which separates optimistic from pessimistic sentiment.
According to the Central Bank, a survey of 2,200 households between 11 and 18 November showed that consumers’ opinions regarding future domestic economic conditions was the category which deteriorated the most compared to the previous month.
Consumers also grew more pessimistic with regards to their current domestic economic conditions, future employment possibilities and future living standards. On the other hand, consumers were more optimistic regarding prospective interest rates and household debt.
FocusEconomics Consensus Forecast panelists expect private consumption to expand 2.4% in 2016, which is up 0.1 percentage points from last month’s forecast.
For 2017, the panel sees private consumption growth at 2.2%, which is unchanged from last month’s estimate. ■