September Consumer Sentiment Rebounds After a Month, but Perceived Economic Conditions Remain Sluggish Amid Housing Price and Inflation Concerns

[Financial News]  Consumer sentiment rebounded after a month, supported by economic growth, including robust semiconductor exports. However, despite solid economic indicators, perceived economic conditions among ordinary people remain sluggish because of surging housing prices and inflation concerns.
The BOK's September Consumer Survey, released on the 23rd, showed that the Consumer Sentiment Index (CCSI) rose 2.1 points from the previous month to 106.6.
The CCSI is a composite statistic based on six major indices that reflect consumers' perceptions of current economic conditions and their outlook for the future. A reading above 100 indicates that optimistic views are dominant. The survey was conducted from the 9th to the 16th among more than 2,000 urban households nationwide.
Economic-related indices showed a clear rebound. The improvement came as solid trends continued in areas such as semiconductor-led exports, while stock market volatility eased.
The Current Economic Assessment CSI rose 4 points from the previous month to 83. The Future Economic Outlook CSI also increased by 1 point to 90. The Household Income Outlook CSI and Consumer Spending Outlook CSI rose by 2 points and 1 point, respectively, to 102 and 110, reflecting greater expectations for improved income conditions.
In contrast, the real estate market faced evenly balanced upward and downward pressures, including rising apartment prices in the capital region and base rate hikes. The Housing Price Outlook CSI remained at 125, unchanged from the previous month.
Inflation remains a source of concern.
The expected inflation rate for consumer prices over the next year stood at 2.7%, unchanged from the previous month. Expected inflation three and five years ahead also remained unchanged at 2.6% each. These figures are somewhat higher than the BOK's inflation target of 2.0%.
Park Yong-min, head of the BOK's Economic Tendency Survey Team, said, "The 2.7% expected inflation rate reflects a combination of upward factors, such as higher international oil prices following the resumption of conflict in the Middle East, and downward factors, including expectations that monetary tightening will continue and a decline in the won-dollar exchange rate."
Among the major items expected to influence inflation, petroleum products had the highest response rate at 52.7%, followed by agricultural, livestock and fishery products at 39.9%, and public utility charges at 29.8%.

[email protected] Jung Sang-gyun Reporter