S. Korea's consumer sentiment index hit record low since April 2017

Arirang News 2018-06-26

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South Korea's consumer sentiment index is at its lowest point since April last year.
The Bank of Korea says gloomy job figures and trade tensions between the U.S. and China contributed to the gloomy consumer sentiment figures.
Our Ko Roon-hee with the details.
South Korea's consumer confidence dipped in June to its lowest point in 14 months.

According to the Bank of Korea, the composite sentiment index dropped two-point-four points from the previous month to 105-point-five, its lowest level since April 2017.
A reading above 100 means there are more optimists than pessimists about the economy.

The nation's central bank attributed the fall to two main concerns for South Koreans…sluggish job figures and the U.S.-China trade spat.

Earlier this month, Statistics Korea announced that the unemployment rate for Koreans aged 15-to-29 was ten-point-five percent... the highest on record since related figures were first compiled in 1999.

South Koreans were also pessimistic about the nation's economy because of increasing tensions between the U.S. and China.

U.S. President Donald Trump announced earlier in June that he will press ahead with a 25 percent tariff on Chinese imports and China's Commerce Ministry said it will apply countermeasures of the same scale.

The Bank of Korea said South Koreans are worried about the damage to the nation's exporters, which produce parts that go into China's final products.

It also added that other external factors might have affected people's sentiment, such as U.S. Federal Reserve raising interest rates.

"South Korean stocks dropped in June. This is related to another rate hike by the U.S. Fed. Other emerging economies such as Turkey or Brazil have been seeing capital outflows after the move."

The Bank of Korea predicted that next month's consumer sentiment index will likely be affected by what happens to the nation's exports.
Ko Roon-hee, Arirang News.

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