The South Korea Composite Consumer Sentiment Index (CCSI) for October posted at 109.8, down marginally from 110.1 in September, but still indicating generally optimistic consumer sentiments, reported the Bank of Korea.
The monthly CCSI logs above 100 when the number of consumers surveyed expressing a positive outlook is greater than the number with negative views.
In October, South Korean consumer sentiment regarding living standards posted at 96, unchanged from September, while consumer future outlook was also unchanged at 100 in both months, said the central bank.
Consumer sentiment in October concerning current domestic economic
conditions was unchanged from September at 91, but that concerning future domestic economic conditions logged at 94, down from 97 in September, according to the Bank of Korea.
The modest decline in consumer sentiments in October "was mainly attributable to trade-related uncertainties, including the prolonged tariff talks with the US and renewed tensions in US-China trade relations," a central bank staffer said, reported The Korea Herald.
The CCSI sub-index for prospective wages registered at 122 in October, indicating South Koreans were optimistic about future pay packages.
South Koreans also expect house prices to appreciate, with the prospective housing prices sub-index striking 122 in October, up from 112 in September, noted the Bank of Korea.
Consumer expectations regarding house prices may present a challenge to central bankers and other South Korean officials, who have expressed concerns that Seoul housing prices may be in a bubble, which, if it were to pop, could damage consumers and lending institutions.
In addition, for both the three- and five-year periods ahead, South Korean consumers in October expect a 2.6% annual inflation rate, which is moderately above the Bank of Korea's 2% annual target.
The Bank of Korea next meets in November to ponder monetary policy and interest rates.
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