ID :
52168
Wed, 03/25/2009 - 08:26
Auther :
Shortlink :
https://www.oananews.org//node/52168
The shortlink copeid
S. Korean S. Korean consumer sentiment inches down in March sentiment inches down in March
SEOUL, March 25 (Yonhap) -- South Korea's consumer sentiment edged down in March as concerns over a sluggish job market and an upturn in inflation overshadowed expectations for an economic stimulus package, the central bank said Wednesday.
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 -- fell to 84 in March, compared with 85 the previous month.
A reading below 100 means pessimists outnumber optimists. The survey of 2,200
households in 56 major cities was taken from March 12-19.
"Although the government unveiled an economic stimulus package, consumers are
still wary of stagnant job markets and an upturn in consumer prices due to a
weaker won," said Jeong Kui-yun, an official at the BOK. "They remained concerned
about the economic slump."
The results come as the South Korean economy shrank 5.6 percent last quarter from
three months earlier amid tumbling exports and weak domestic demand. Asia's
fourth-largest economy is widely expected to post negative growth this year, the
first annual contraction since the 1997-98 Asian financial crisis.
On Tuesday, the government announced a 28.9 trillion won (US$20.9 billion) extra
budget aimed at creating more jobs and jump-starting the sputtering economy. Of
the total, it set aside 17.7 trillion won for additional spending, with the
remainder to be spent to make up for shortfalls in tax revenue.
South Korea's jobless rate jumped to a four-year high of 3.9 percent last month
as the country saw 142,000 jobs eliminated. The country's consumer prices
unexpectedly rose 4.1 percent on-year in February, the first upswing in seven
months due to the local currency's weakness.
The CSI for future job opportunities rose to 60 from 54 the previous month on
high expectations for the stimulus package's effects and fiscal spending. But the
CSI for inflation jumped by 14 points to 142, the highest level since July 2008,
on the weak won.
On March 12, the BOK froze its key interest rate after six consecutive rate cuts
to gauge the effects of reductions on the economy and brace for a deeper economic
downturn. Between October and February, the central bank slashed the rate by a
total of 3.25 percentage points.
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 -- fell to 84 in March, compared with 85 the previous month.
A reading below 100 means pessimists outnumber optimists. The survey of 2,200
households in 56 major cities was taken from March 12-19.
"Although the government unveiled an economic stimulus package, consumers are
still wary of stagnant job markets and an upturn in consumer prices due to a
weaker won," said Jeong Kui-yun, an official at the BOK. "They remained concerned
about the economic slump."
The results come as the South Korean economy shrank 5.6 percent last quarter from
three months earlier amid tumbling exports and weak domestic demand. Asia's
fourth-largest economy is widely expected to post negative growth this year, the
first annual contraction since the 1997-98 Asian financial crisis.
On Tuesday, the government announced a 28.9 trillion won (US$20.9 billion) extra
budget aimed at creating more jobs and jump-starting the sputtering economy. Of
the total, it set aside 17.7 trillion won for additional spending, with the
remainder to be spent to make up for shortfalls in tax revenue.
South Korea's jobless rate jumped to a four-year high of 3.9 percent last month
as the country saw 142,000 jobs eliminated. The country's consumer prices
unexpectedly rose 4.1 percent on-year in February, the first upswing in seven
months due to the local currency's weakness.
The CSI for future job opportunities rose to 60 from 54 the previous month on
high expectations for the stimulus package's effects and fiscal spending. But the
CSI for inflation jumped by 14 points to 142, the highest level since July 2008,
on the weak won.
On March 12, the BOK froze its key interest rate after six consecutive rate cuts
to gauge the effects of reductions on the economy and brace for a deeper economic
downturn. Between October and February, the central bank slashed the rate by a
total of 3.25 percentage points.
