The Bank of Korea said on the 23rd that the consumer sentiment index (CCSI) for April turned "pessimistic" for the first time since April last year. Consumer sentiment weakened as inflation was expected to rise due to energy supply disruptions from the Middle East war.
According to the Bank of Korea's April consumer survey, the April consumer sentiment index was 99.2, down 7.5 points from the previous month. The decline was the largest since the December 2024 martial law. A consumer sentiment index of 100 or higher means expectations are optimistic, and below 100 means pessimistic. More consumers judged that the economy is not good.
The current economic assessment CSI, which reflects consumers' judgment of the economy now compared with six months ago, was 68, down 18 points from the previous month. The outlook for the economy six months ahead, the future economic outlook CSI, was 79, down 10 points from the previous month.
The price level outlook CSI, which shows consumer perceptions of prices one year from now, was 153, up 4 points from the previous month. The one-year expected inflation rate was also 2.9%, up 0.2 percentage point from the previous month. The one-year expected inflation rate has risen for two consecutive months. The expected inflation rate three years ahead was unchanged from the previous month at 2.6%, and the expected inflation rate five years ahead was 2.6%, up 0.1 percentage point.
The current living conditions CSI, which shows views on current household finances, was 91, down 3 points from the previous month. The living conditions outlook CSI, the household financial outlook six months ahead, was 92, down 5 points over the same period. The dwellings price outlook CSI rose 8 points to 104.
Perceptions of household savings and liability conditions showed little change from the previous month. A Bank of Korea official said, "It was found that consumer sentiment was affected by increased domestic and external economic uncertainty due to the Middle East war," and added, "We do not know when the Middle East war will end, but it is assessed to have mainly affected short-term sentiment."