Shopper sentiment turned downward after one month as costs and the won-dollar trade charge fluctuated.
In response to the Shopper Survey outcomes introduced by the Financial institution of Korea on Dec. 24, the Composite Shopper Sentiment Index (CCSI) for December was 109.9, down 2.5 factors from the earlier month. The decline was the biggest since December final 12 months (-12.3 factors) when the Dec. 3 martial regulation disaster occurred.
A CCSI above 100 means client sentiment is optimistic in comparison with the long-term common (2003-2024), whereas beneath 100 signifies pessimism. The CCSI, which had fallen for 2 consecutive months in September (-1.3 factors) and October (-0.3 factors), turned upward in November buoyed by the conclusion of Korea-U.S. tariff negotiations, however returned to a downward development this month.
The Financial institution of Korea cited rising residing prices and elevated trade charge volatility because the background for declining client sentiment. Lee Hye-young, head of the Financial institution of Korea’s Financial Sentiment Survey Workforce, mentioned, “Latest value will increase seem like affecting client spending, and the rising won-dollar trade charge can be influencing client sentiment.”
The Housing Worth Outlook Index recorded 121, up 2 factors from November, turning to an upward development after one month. This implies the proportion of shoppers predicting housing value will increase one 12 months from now has elevated. That is the best degree since October this 12 months (122).
Anticipated inflation for the subsequent 12 months remained the identical because the earlier month at 2.6%. The Curiosity Charge Degree Outlook Index, which forecasts rate of interest ranges six months forward, was 102, a rise of 4 factors from the earlier month.
