South Korean consumer confidence fell for a fifth consecutive month in June on concerns that rising oil prices and a firmer won may deter a quick turnaround in Asia's fourth-largest economy, a government report showed Thursday.
The index measuring consumer confidence in economic and living conditions for the next six months stood at 97.4 in June, compared with 98 in May, according to the report by the National Statistical Office (NSO).
A reading below 100 indicates that a majority of consumers are pessimistic about the economy, their financial well-being and spending.
The slump in confidence comes amid growing concerns about a slowdown in the pace of the economic recovery.
The economy is expected to recover from its two-year slump by growing 5 percent for the full year. It expanded 5.8 percent in the first six months of the year from a year earlier.
But there are still downside risks such as high oil prices and the local currency's sharp gain against the U.S. dollar.
The data will help the Bank of Korea, the country's central bank, to keep its key interest rate at the current rate of 4.25 percent at next week's rate-setting meeting.
Last month, it raised the cost of borrowing by a quarter of a percentage point, citing increased inflationary pressure stemming from high oil prices and the economic recovery.
According to the report, the consumer assessment index, which compares consumer views on the economy and current living conditions to those held six months earlier, stood at 81.9 in June, down from 83 the previous month.
The index measuring consumer confidence in the economy fell to 89.6 in June from 90.4 the previous month, while the index for future spending stood at 104.5, compared with 104.8 the month earlier, the report showed.
Seoul, July 6 (Yonhap News)
S. Korean consumer sentiment falls for 5th month in June |
