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ANZ-Roy Morgan South Korean Consumer Confidence: Consumer Sentiment Falls Despite Extra Holiday
August 25 2015
- Finding No.
Consumer Confidence Press Release
The monthly ANZ-Roy Morgan South Korea Consumer Confidence Index is based on 1,000 telephone interviews conducted throughout South Korea. Men and women aged 14 and over were randomly selected during the month of August 2015.
ANZ’s Senior Economist Raymond Yeung said:
- ANZ-Roy Morgan South Korea Consumer Confidence fell sharply by 5.0pts to 76.8 in August. The index remains well below its long-term average of 84.6 in August, 12.3pts below the reading in August 2014 (89.1). The confidence across all components of the survey fell in August.
- In terms of personal finances now 10% (down 0.7ppts) of respondents said their families are ‘better off’ financially than this time last year compared with 45% (up 2.4ppts) that said their families are ‘worse off’.
- Under a quarter of respondents, 23.3% (down 4.8ppts) expect that their families will be ‘better off’ financially this time next year (the lowest level ever recorded) while 33.3% (up 2.5ppts) expect their families to be ‘worse off’ financially this time next year.
- Thinking of economic conditions in South Korea going forward, just a fifth, 20.4% (down 1.2ppts), of respondents, expect South Korea will have ‘good times’ economically over the next 12 months, compared with 63.5% (up 0.5ppt) that expect ‘bad times’ economically.
- Over the longer term, 35.9% (down 4.8ppts) of respondents expect South Korea will have ‘good times’ economically during the next five years (an equal record low) and 42.3% (up 3.6ppts) expect ‘bad times’ economically for South Korea.
- In August, 24.8% (down 2.6ppts) of respondents say that now is a ‘good time to buy’ major household items (an equal record low) while 46.3% (up 2.1ppts) say that now is a ‘bad time to buy’ major household items (the highest level ever recorded).
- Inflation expectation edged down 0.1ppts to 2.5% in August.
“Although there are signs that a special holiday on 14 August this year has lifted local retail sales, the overall sentiment remained weak. Notwithstanding the political tension with North Korea is expected to subside given the agreement announced last night (24 August), the consumption outlook remains challenging.
"Nonetheless, today’s release adds to our increasing concern on the overall economic prospect. Given the deteriorating external environment, domestic sentiment is critical to upholding Korean economy. The near-term economic prospect continues to see downside risk and this will prompt the central bank to stay accommodative. Even though the policy interest rate is at all-time low of 1.50%, further monetary easing is still on the cards.”
Click to view the latest ANZ-Roy Morgan South Korean Consumer Confidence Release PDF - August 2015.
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