23% of Seoul Citizens Say "Mayor Oh Se-hoon's Term Improved Livelihood Economy"... 2Q Economic Sentiment Recovers to Pre-COVID Levels

Seoul Institute Announces 'Q2 Consumer Sentiment in Seoul and Desired Economic Policies for Seoul'
Consumer Attitude Index Recovers Above 90 at 92.9 for the First Time Since COVID-19 Outbreak
34.2% of Citizens Report Socioeconomic Status Decline Due to COVID-19... Cite 'Stabilizing Living Costs' to Revitalize Livelihood Economy

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] It has been revealed that the perceived economic condition of Seoul citizens is recovering to the level before the outbreak of COVID-19. The Consumer Sentiment Index (CSI) recovered to the 90-point level in the second quarter for the first time since the COVID-19 outbreak, and the Employment Outlook Index has also continued its recent upward trend. However, only 23% of Seoul citizens expected the livelihood economy to improve during the new Seoul mayor’s term, and among them, 39.1% considered ‘stabilization of living costs’ to be the most important factor for revitalizing Seoul’s livelihood economy one year later.

On the 28th, the Seoul Institute announced through the ‘2nd Quarter Seoul Consumer Sentiment and Economic Policy Expectations for Seoul’ survey that the Consumer Sentiment Index rose by 3.9 points from the previous quarter to 92.9 in the second quarter of 2021, recovering to the 90-point level for the first time since the COVID-19 outbreak. Seoul’s Consumer Sentiment Index had remained below 90 since recording 93.3 in the fourth quarter of 2019, just before the COVID-19 outbreak.

Among the components of the Consumer Sentiment Index, the Current Living Conditions Index rose by 3.7 points from the previous quarter to 76.6, while the Future Living Conditions Index fell by 0.8 points to 95.2. This is interpreted as a result of an increase in households expecting their living conditions to worsen one year later due to reasons such as decreased household income and rising prices.

The Seoul Institute analyzed, "With the spread of vaccine distribution and the government emphasizing bold consumption stimulation and domestic demand boosting policies in the second half economic policy direction, the Consumer Sentiment Index is expected to recover gradually after the second quarter. However, if the economic recovery becomes more evident, concerns about consumer price increases and interest rate hikes remain, and downside risk factors still exist, making the situation highly uncertain."

Additionally, the Durable Goods Purchase Attitude Index of Seoul citizens in the second quarter was recorded at 81.9, up 4.3 points from the previous quarter, and the Housing Purchase Attitude Index, which had been declining for three consecutive quarters, slightly rose by 2.6 points to 56.4. The Employment Outlook Index also rose by 4.0 points from the previous quarter to 78.5, continuing its upward trend for four consecutive quarters.

Meanwhile, a survey conducted by the institute targeting a sample of 1,200 households in the Seoul area (1,200 respondents) showed that 13.8% responded that they were ‘satisfied’ with their current socioeconomic status, while 41.3% responded that they were ‘dissatisfied.’ The proportion of respondents who said their socioeconomic status had ‘declined’ compared to before the COVID-19 outbreak was 34.2%, significantly higher than the 6.3% who said it had ‘improved.’

In this situation, the most urgent economic policy desired from the Seoul mayor was ‘stabilization of living costs,’ chosen by 38.5%, and the important economic policies received high scores for ‘COVID-19 prevention’ (4.38 points) and ‘real estate market stabilization’ (4.33 points).

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