Indicators
Korean Consumers Turn Pessimistic as Rates Stay High for Longer
- Drop in consumer confidence comes ahead of rate decision
- Inflation expectations worsen in challenge to central bank
Customers dine at an outdoor restaurant at Sungsu district in Seoul, South Korea.
Photographer: Woohae Cho/BloombergThis article is for subscribers only.
South Korea’s consumers turned pessimistic for the first time this year, indicating that their confidence may be fraying as interest rates stay elevated for an extended period.
The Composite Consumer Sentiment Index slumped in May to 98.4, falling below the threshold of 100 that divides optimism and pessimism for the first time since December, according to Bank of Korea data released Tuesday. It also marked the biggest drop since September 2023.