Korea’s consumer sentiment stays pessimistic for the second month in June

Korean consumer sentiment stayed pessimistic for the second month in a row in June as economic prospects dimmed further amid expanded trade frictions between the United States and China.

The composite consumer sentiment index (CCSI) for June stood at 97.5, down 0.4 points from May, according to data released by the Bank of Korea on Tuesday. The index appeared to have bottomed out in November from a 95.7 low, recovering above the benchmark 100 in April. The direction reversed from May.

A reading above 100 means there are more optimists than pessimists about economy and vice versa for below 100.

There were more planning to cut spending in the next six months, leading to the fall in the weighted index. The index for future spending declined 1 point to 108 in June.

A reading for interest rate outlook plunged 9 points from last month to 100 amid strengthening bets on rate cuts both in the U.S. and Korea.

The index measuring expectations for housing prices rose 4 points to 97, but consumer price outlook fell 2 points to 143 due to the sagging international oil prices. Consumer sentiment about current livelihood and the outlook for future livelihood stayed unchanged from the previous month at 91 and 92, respectively. Expectations for increases in household income also remained steady at 97.

Their view on inflation over the past year and expectation for the coming year edged down 0.1 point respectively to 2.2 percent and 2.1 percent.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]