(Yonhap)
Despite its recovery in the first quarter, South Korea’s Consumer Confidence Index ranked near the bottom among member countries of the Organization for Economic Cooperation and Development, according to OECD data Monday.
The Consumer Confidence Index is an indicator designed to measure consumers’ perception of their economic situation. A reading below 100 indicates that pessimistic consumers outnumber optimists.
In March, Korea’s index reached 99.06, increasing for the second month since January when the figure was 98.7. The March figure, however, ranked third from the bottom among OECD countries, the data showed. Turkey and Greece took the bottom spots with 96.79 and 96.34, respectively.
Korea’s index also fell behind by 1.5, compared with the OECD average of 100.56.
Despite the recent increases in retail sales and consumption activities, Korea’s consumer sentiment is expected to remain dampened down the road, largely due to the record high household debt and stagnant increase in household income, according to the Korea Development Institute last week.
Korea’s index reached 100.09 in August last year, just above the threshold, but it dropped to 98.7 over the next five months, recording the lowest level since March 2009.
The decrease was largely attributed to political and economic uncertainties, the impeachment of the former president, as well as corporate restructuring in the shipbuilding industry, according to local economists.
By Shim Woo-hyun (
ws@heraldcorp.com)