Consumer sentiment in South Korea remained positive but soured to a 14-month low in November, data showed Wednesday, reflecting concerns over Asia's fourth-largest economy caused by a weakening Japanese yen and the intangible effects of government stimulus.
The overall consumer sentiment index (CSI) reached 103 in November, slipping from 105 in the previous month, according to the Bank of Korea (BOK). A reading above 100 means that optimists outnumber pessimists.
The November figure marks the lowest level since 102 in September 2013 when uncertainties over U.S. Fed tapering and emerging market turmoil gripped sentiment. It also marks a fall from the post-Sewol level when the deadly ferry sinking pummeled spending.
The data showed that the index measuring consumers' perception of the economy fell to 74 from 79 the previous month. Their outlook on the economy also worsened to 87 from 91.
Anticipation over a rise in property prices weakened, with the relevant index falling to 119 from 124.
Meanwhile, the index measuring their six-month outlook for the base rate rose to 94 from 90, reflecting weakening hope for an additional rate cut following two quarter percentage point rate cuts in August and October.
The data comes amid concerns that government stimulus has not been powerful enough to spur growth in the Korean economy.
A fall in yen triggered by the Bank of Japan's surprise announcement to further push for quantitative easing has also weakened sentiment recently. A weakening yen is seen as a threat to local manufacturers that compete with Japanese firms.
In a news conference following November's policy decision, BOK Governor Lee Ju-yeol noted that while economic agents' sentiment remain sluggish, market concerns over external uncertainties "may be excessive."
The CSI survey of 2,200 households across the nation was conducted from Nov. 12-19. (Yonhap)
