Korea’s Consumer Sentiment Chills by Fastest Pace since Impeachment

https://korean-machinery.com///inquiryAccording to data recently released by the Bank of Korea, South Korea’s composite consumer sentiment index (CCSI) for June deteriorated 2.4 percentage points from the May reading to 105.5, lowest since 100.8 in April last year.
The last time consumer sentiment soured so abruptly was in November 2016 following the legislative impeachment on sitting Korean president Park Geun-hye.
The index just managed to stay above the 100-threshold. A number beneath it means consumers are more negative than positive about the economy. After deteriorating for five months in a row, sentiment briefly improved last month amid expectations for eased geopolitical risk and revived inter-Korean economic ventures following the South-North Korea summit.
The indices measuring present sentiment for the economic conditions and outlook for the economy in coming months fell 5 basis points respectively to 84 and 96.
The worsening sentiment, which can further dampspending and domestic demand, and job data, as well as uneasiness on the external front due to escalated trade conflicts among economy majors of the U.S., China, and Europe, will likely to put the Bank of Korea in a greater bind. The bank has stayed pat on its rate at 1.50 percent despite increases in the U.S. Federal Reserve but cannot put off tightening any longer due to widening gap. The survey for this month was conducted from June 11 to June 18 on 2,200 households across the country, of which 1,958 households responded. (Source:KITA)

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