The Consumer Composite Sentiment Index (CCSI) rebounded after six months in May thanks to improved relations between South and North Korea after
inter-Korean summit on April 27th. The CCSI is an indicator of interest rates and general consumer sentiment of the economy by combining six sub-indices, including current living standards, projected living standards, projected household income, projected household expenses, current domestic economic conditions, and projected domestic economic conditions. If the index is higher than 100, it indicates an optimistic outlook and lower than 100, it indicates a pessimistic one.
According to an announcement by the Bank of Korea on May 29, the CCSI hit 107.9 in May, up 0.8 points from the previous month. The CCSI had been falling for five months since December last year.
The consumer sentiment sub-index related to current domestic economic conditions (89) and future domestic economic conditions (101) increased by 3 points and 5 points, respectively. This means there are more people who feel that the economy is improving and more consumers who expect the economy to improve in the future.
“The CCSI rose in May as consumers expect greater economic cooperation after relations between the two Koreas have improved and trade tensions between the US and China have eased,” a Bank of Korea official said.