S. Korea's consumer confidence falls

Wednesday, 11 May 2005 10:50:00 (GMT+3)   |  

S. Korea’s consumer confidence falls

South Korea's consumer confidence index fell for the first time in the last four months in April as slower-than-expected domestic economic recovery and the sluggish stock market affected spending. Based on the data released by the Korea's National Statistical Office (NSO), the consumer confidence index fell from 102.2 in March to 101.3 in April. Consumers act prudently because of economic prospects, which are affected by external negatives such as slowing global economy and a possible revaluation of the Chinese Yuan. However, NSO indicated that consumers are still optimistic in general as the index stays above a baseline of 100. Meanwhile, economists expect South Korea's central bank to leave its interest rate at 3.25% to spur spending. The government, which has cut sales and income taxes, aims to pick up domestic demand to revive the country's economic growth as Won gains and high energy costs hurt exports.

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