Consumer Sentiment Index Rises for Two Consecutive Months on Vaccine Expectations... Housing Price Outlook Drops by 1 Point

Bank of Korea Announces 'February 2021 Consumer Sentiment Survey Results'
Housing Price Outlook Drops 1p... "Impact of Government's Metropolitan Housing Supply Plan Announcement"

[Asia Economy Reporter Jang Sehee] As the spread of COVID-19 subsides and expectations for vaccination rise, the Consumer Confidence Index (CCSI) continued its upward trend. Meanwhile, the Housing Price Outlook Index slightly decreased compared to January.

According to the "February 2021 Consumer Survey Results" announced by the Bank of Korea on the 23rd, the consumer confidence index this month was 97.4, up 2.0 points from January.

However, due to the continued number of COVID-19 confirmed cases in the 300s, the increase in consumer expectations slowed. In fact, during the February consumer survey period (February 8?16), the number of COVID-19 confirmed cases was 381. During last month's consumer survey period (January 11?18), it was 509.

Although the spread of COVID-19 has decreased compared to before, it is interpreted that anxiety still remains. Previously, in December last year, the consumer confidence index was 91.2, which was a drop of 7.8 points compared to the previous month.

The Consumer Confidence Index is a psychological indicator calculated using six major indices of the Consumer Survey Index (current living conditions, living conditions outlook, household income outlook, consumption expenditure outlook, current economic judgment, future economic outlook). A value above the long-term average (January 2003?December 2020) baseline of 100 indicates optimism, while a value below indicates pessimism.

By category, the consumption expenditure outlook rose by 2.0 points, and both the living conditions outlook and current living conditions increased by 1.0 point each compared to the previous month. However, the household income outlook showed no change.

The interest rate level outlook index recorded 104, up 2 points from the previous month due to weakened expectations of further interest rate cuts. The housing price outlook index was 129, down 1 point from the previous month.

A Bank of Korea official explained, "While the upward trend is expanding in the Seoul area, the increase nationwide is slightly slowing," adding, "The government's announcement of plans to expand housing supply in metropolitan areas seems to have contributed to weakening the expectation of price increases."

This content was produced with the assistance of AI translation services.