Consumer confidence in South Korea remained unchanged in the month of June following ongoing corporate re-structuring in the sectors of shipping and shipbuilding, central bank data showed on Tuesday.
The composite consumer sentiment index (CCSI) stood at 99 in June, unchanged from the previous month, data released by the Bank of Korea (BOK) showed. The reading below 100 means pessimists outnumbered optimists. However, the index rose from 100 in March to 101 in April, before falling to 99 in May and June. The result is based on a BOK survey of 2,079 households nationwide between June 14 and 21.
Further, in June, consumer sentiment toward current and future economic conditions further deteriorated with indexes for both categories losing 2 points each from the previous month to 68 and 78, respectively. People's sentiment toward employment slightly improved, with an index measuring their sentiment toward job opportunities coming to 75 in June, up from 74 in the previous month, according to the BOK.
Consumer confidence in the economy ripped off as the government adopted restructuring in troubled shipbuilders and shipping firms, which are expected to cause massive layoffs and reduction in facilities, reports said. Also, tension concerning Brexit in the past few months worked to pull sentiments down, thus, boosting uncertainties over future economic situations.
Meanwhile, the BoK had cut its benchmark interest rate by a quarter percentage point to 1.25 percent earlier this month; however, consumers predicted a further rate cut later this year. Also, inflation expectations among consumers, as per this survey, came in at 2.4 percent in June, for the next 12 months; remaining unchanged from May.
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