Seoul: Consumer sentiment fell for the first time in four months in August on a stock market correction and rising inflation, the central bank said Tuesday. The composite consumer sentiment index (CCSI) stood at 104.5 this month, down 2.3 points from July, according to a survey by the Bank of Korea (BOK).
According to Yonhap News Agency, it marked the first on-month drop since April, but has stayed over the 100-point mark since May. A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 suggests the opposite.
"Despite solid real economic trends, the stock market correction and mounting inflation weighed heavily on consumer sentiment," the BOK said. "Although consumer prices rose 2.8 percent in July, slowing down from 3.2 percent in the previous month, many people believe prices are still high."
The subindex for people's assessment of current economic conditions came in at 79 in August, down 5 points from a month earlier. The index for people's outlook for future economic conditions also fell 3 points to 89 over the same period.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 24.6 percent in July alone on concerns about the future of large-scale artificial intelligence (AI) infrastructure investment. However, the country's exports remained robust as outbound shipments surged 63 percent on-year to the second largest monthly level in July driven by robust global demand for memory chips.