The consumer sentiment index in August fell 2.3 points from the previous month to 104.5. The shift to a decline is the first in four months since April (-7.8 points), right after the Middle East war. A Bank of Korea official said, "The real economy is showing a favorable trend, but the perceived economy was sluggish due to a domestic stock market correction and rising prices."
The index is calculated by combining major indexes related to consumer sentiment. Above 100 means consumer sentiment is optimistic compared with the 2003–2024 average, and below 100 means it is pessimistic. The survey was based on responses from 2,500 households nationwide from the 7th to the 14th of this month.
According to the Bank of Korea (BOK), all six components of the index declined. This is also the first time since April. Among the six, the order of the largest impact on the index decline was ▲ current economic assessment (84→79) ▲ future economic outlook (92→89) ▲ household income outlook (101→100) ▲ consumption expenditure outlook (110→109) ▲ current living conditions (93→92) ▲ living conditions outlook (98→97).
The employment opportunity outlook index, which the Bank of Korea (BOK) also surveys as a reference indicator, fell from 89 to 86. This was influenced by unfavorable youth employment conditions. A Bank of Korea (BOK) official said, "Among those surveyed by age group, the employment opportunity outlook index for those under 40 fell by a larger margin than other age groups."
The house price outlook index also fell from 127 to 125. This is the first decline in the index since March (108→96). The wage level outlook index also turned down for the first time since March, from 124 to 123.
Meanwhile, expected inflation, which projects the consumer price inflation rate for the next year, was 2.7%, the same as the previous month.