Consumer sentiment in South Korea weakened for the first time in a month, hit by a correction in domestic stocks and continued tensions in the Middle East.
The Composite Consumer Sentiment Index (CCSI) stood at 105.4 in October, down 1.2 points from the previous month, according to the October Consumer Tendency Survey released by the Bank of Korea on the 27th. The index had risen for three consecutive months from May before falling in August on a sharp stock market drop, then turned higher in September.
The CCSI aggregates six major components of the Consumer Tendency Survey Index (CSI), which measures consumers' views of economic conditions and their outlook. A reading above 100 indicates optimism compared with the long-term average from 2003 to 2024, while a reading below 100 signals pessimism.
"Consumer sentiment edged lower as pessimistic views on the economy increased again amid the correction in domestic stocks and continued conflict in the Middle East," a Bank of Korea official said.
By component, the household income outlook index fell 1 point to 101, while the index for future economic conditions dropped 2 points to 88.
The housing price outlook index came in at 124, down 1 point from the previous month. A reading above 100 means more consumers expect home prices to rise a year from now. The index has stayed above 100 for seven months since April.
"Apartment prices continued to climb in the greater Seoul area, including non-Gangnam districts of Seoul and Gyeonggi Province, but the index slipped slightly because of the government's housing measures and the rise in the base rate," the central bank said.
Inflation expectations for the next year held at 2.7%, unchanged from the previous month. Upward pressure from continued gains in global oil prices was offset by downward factors including the extension of a cap on petroleum prices and the increase in the base rate. Expectations for inflation three years and five years ahead were both 2.6%, also unchanged.
The survey covered 2,500 households in cities nationwide from the 13th to the 20th of this month, with 2,238 responding.
