Consumer sentiment in South Korea worst since November 2022

By Kim Dong-young Posted : December 24, 2024, 13:30 Updated : December 24, 2024, 13:30
A man walks by automated teller machines in Seoul, Nov. 19, 2024. Yonhap
 
SEOUL, December 24 (AJP) - Korea's consumer sentiment dropped sharply in December, marking its steepest decline since the 2008 global financial crisis amid political uncertainty concerning President Yoon Suk Yeol, the central bank said on Tuesday.

The composite consumer sentiment index (CCSI) fell 12.3 points from the previous month to 88.4 in December, according to the Bank of Korea (BOK), reaching its lowest level since November 2022.

The decline represents the largest monthly drop since October 2008, when the index fell 12.6 points during the height of the global financial crisis.

The current domestic economic conditions index plunged 18 points to 52, while the prospective domestic economic conditions index also dropped 18 points to 56.

"The martial law situation emerged as an additional factor driving down the index, which had already been affected by concerns about export slowdown due to uncertainty surrounding the U.S. presidential election," said Hwang Hee-jin, head of the economic statistics department at BOK.

The housing price outlook index declined 6 points to 103, falling for the third consecutive month since hitting a 35-month high of 119 in September.

The expected inflation rate for the next year rose 0.1 percentage point to 2.9 percent, despite the central bank's two consecutive rate cuts in October and November, as concerns grew over potential public utility fee increases and recent currency volatility.

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