ID :
27018
Tue, 10/28/2008 - 16:11
Auther :
Shortlink :
https://www.oananews.org//node/27018
The shortlink copeid
Korean consumer sentiment dips in October amid financial turmoil
SEOUL, Oct. 28 (Yonhap) -- South Korea's consumer sentiment declined in October as the current financial turmoil and concerns over a global recession hurt consumer confidence, the central bank said Tuesday.
According to the Bank of Korea (BOK), the consumer survey index (CSI) -- a gauge
of consumers' overall sense of their economic outlook, living conditions and
future spending -- dropped to 88 in October, compared to 96 in the previous
month.
"Consumer sentiment was severely dented by falling asset values following
financial turbulence and growing concerns over a global recession," the BOK said
in a statement.
A reading below 100 means pessimists outnumber optimists. The survey of 2,200
households in 56 major cities was taken Oct. 14-21.
The report came one day after the BOK made an emergency rate cut by 0.75
percentage point, its largest cut ever, to 4.25 percent in a bid to keep global
financial turmoil from sharply slowing the real economy.
The South Korean economy grew 0.6 percent in the third quarter from three months
earlier, the slowest growth in four years, due to sluggish domestic demand and
lagging export growth.
South Korea's stock and foreign exchange markets have been volatile as foreign
investors pull money out of the Korean markets.
The country's key stock index has fallen more than 45 percent so far this year
after reaching an all-time high of 2,064.85 in late October of last year. The
local currency has declined about 35 percent against the U.S. dollar so far this
year.
Meanwhile, Korean consumers' inflation expectations stayed at a high level in
October as a weaker won put upward pressure on inflation despite falling oil
prices.
South Korea's inflation expectation rate remained unchanged at 4.4 percent in
October from a month earlier, the BOK said.
The inflation expectation rate refers to consumers' average expectations on
inflation over the next 12 months. The survey showed that 39.2 percent of 2,172
respondents expected that the country's consumer prices will rise 4.5-5.5 percent
over the next year. South Korea's consumer inflation climbed 5.1 percent on-year
in September.
sooyeon@yna.co.kr
According to the Bank of Korea (BOK), the consumer survey index (CSI) -- a gauge
of consumers' overall sense of their economic outlook, living conditions and
future spending -- dropped to 88 in October, compared to 96 in the previous
month.
"Consumer sentiment was severely dented by falling asset values following
financial turbulence and growing concerns over a global recession," the BOK said
in a statement.
A reading below 100 means pessimists outnumber optimists. The survey of 2,200
households in 56 major cities was taken Oct. 14-21.
The report came one day after the BOK made an emergency rate cut by 0.75
percentage point, its largest cut ever, to 4.25 percent in a bid to keep global
financial turmoil from sharply slowing the real economy.
The South Korean economy grew 0.6 percent in the third quarter from three months
earlier, the slowest growth in four years, due to sluggish domestic demand and
lagging export growth.
South Korea's stock and foreign exchange markets have been volatile as foreign
investors pull money out of the Korean markets.
The country's key stock index has fallen more than 45 percent so far this year
after reaching an all-time high of 2,064.85 in late October of last year. The
local currency has declined about 35 percent against the U.S. dollar so far this
year.
Meanwhile, Korean consumers' inflation expectations stayed at a high level in
October as a weaker won put upward pressure on inflation despite falling oil
prices.
South Korea's inflation expectation rate remained unchanged at 4.4 percent in
October from a month earlier, the BOK said.
The inflation expectation rate refers to consumers' average expectations on
inflation over the next 12 months. The survey showed that 39.2 percent of 2,172
respondents expected that the country's consumer prices will rise 4.5-5.5 percent
over the next year. South Korea's consumer inflation climbed 5.1 percent on-year
in September.
sooyeon@yna.co.kr
