(Reuters) - South Korea's composite consumer sentiment index in May slipped to its lowest in eight months, dampening hopes for a firm recovery in domestic consumption in Asia's fourth-largest economy, central bank data showed on Tuesday.
The composite consumer sentiment index (CCSI) fell to 105 in May from 108 in April, a survey by the Bank of Korea showed. May's number was the lowest level since a reading of 102 seen in September last year.
A reading above 100 indicates that consumers who expect economic and living conditions to improve in the coming month outnumber those who expect them to worsen.
The index has remained above 100 since December 2012, but has been slowly crawling down from a near 3-year high seen in January.
Policymakers have said domestic spending is expected to contribute more to economic growth in South Korea this year compared to the past, but so far consumption has been off to a wobbly start.
Reflecting this, the Bank of Korea lowered its annual inflation forecast for this year to 2.6 percent from 2.7 in its latest forecasts in April.
The same central bank data showed South Koreans' median expected inflation rate for the next 12 months ticked down to 2.8 percent in May from 2.9 percent seen in April.
The anticipated inflation rate sits roughly halfway between the central bank's target band of 2.5 to 3.5 percent, while actual inflation stood much lower at an annual 1.5 percent in April.
More than 60 percent of the survey's respondents said public utility costs were likely to weigh most on future expenses, while industrial products and housing costs followed.
reuters.com
The composite consumer sentiment index (CCSI) fell to 105 in May from 108 in April, a survey by the Bank of Korea showed. May's number was the lowest level since a reading of 102 seen in September last year.
A reading above 100 indicates that consumers who expect economic and living conditions to improve in the coming month outnumber those who expect them to worsen.
The index has remained above 100 since December 2012, but has been slowly crawling down from a near 3-year high seen in January.
Policymakers have said domestic spending is expected to contribute more to economic growth in South Korea this year compared to the past, but so far consumption has been off to a wobbly start.
Reflecting this, the Bank of Korea lowered its annual inflation forecast for this year to 2.6 percent from 2.7 in its latest forecasts in April.
The same central bank data showed South Koreans' median expected inflation rate for the next 12 months ticked down to 2.8 percent in May from 2.9 percent seen in April.
The anticipated inflation rate sits roughly halfway between the central bank's target band of 2.5 to 3.5 percent, while actual inflation stood much lower at an annual 1.5 percent in April.
More than 60 percent of the survey's respondents said public utility costs were likely to weigh most on future expenses, while industrial products and housing costs followed.
reuters.com
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