Despite the 4th Wave... Consumer Sentiment Index Rebounds After 3 Months

Bank of Korea 'September 2021 Consumer Sentiment Survey Results'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] Consumer sentiment rebounded after three months. Although the 4th wave of the COVID-19 pandemic continues, economic activities are increasingly returning to normal, leading to an improvement in consumer sentiment.

According to the "September 2021 Consumer Sentiment Survey Results" announced by the Bank of Korea on the 28th, the Consumer Confidence Index (CCSI) for September rose by 1.3 points from the previous month to 103.8. Since the start of the 4th wave in July, the CCSI had been declining, but it has rebounded after three months.

The impact of the COVID-19 spread on the CCSI is gradually decreasing. During the first wave in early last year, the CCSI dropped by 31.5 points, while during the second wave it fell by 8.3 points, and during the third wave it decreased by only 7.8 points.

The Bank of Korea explained, "Looking at the index level, it is above 100, indicating that optimistic views are predominant."

Among the indices that make up the CCSI, the Interest Rate Expectation CSI rose by 8 points to 134, as additional base rate hikes are anticipated. The Employment Opportunity Expectation CSI increased by 2 points to 88, reflecting expectations of economic recovery.

The Housing Price Expectation CSI, despite the ongoing rise in housing prices, fell by 1 point to 128.

Additionally, the perception of the consumer price inflation rate over the past year and the expected inflation for the next year both remained unchanged at 2.4% compared to the previous month.

The response proportions for major items expected to influence consumer price increases over the next year were agricultural, livestock, and fishery products (51.1%), petroleum products (38.8%), and rent (36.6%) in that order. Compared to the previous month, the response proportions for rent (+7.0 percentage points) and personal services (+2.9 percentage points) increased, while those for petroleum products (?11.5 percentage points) and agricultural, livestock, and fishery products (?2.3 percentage points) decreased.

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