South Korea’s consumer sentiment deteriorated sharply in September, chilled by the latest virus resurgence.

The composite consumer sentiment index for September fell 8.8 points from the previous month to 79.4, reversing direction for the first time in five months. The index has been steadily recovering after touching an 11-year low of 70.8 in March at the height of the virus outbreak.

The reading remains well below 100, meaning more people are still pessimistic than optimistic about the economy.

The government imposed restrictions short of a full lockdown in mid-August after COVID-19 cases flared to triple-digit figures. The measures were eased after daily new cases fell from the peak of more than 400 to around 100.

The index measuring consumer confidence in current economic conditions compared with six months ago plunged 12 points from the previous month to 42. The index on the economic outlook six months from now also dipped 12 points to 66.

Indexes representing consumer views on the current state of living and future living conditions both edged down 4 points.

Expectations for household income and future spending dipped 7 points and 7 points, respectively.

Outlook on housing prices dropped 8 points to 117, as the government’s latest property rules showed signs of cooling the red-hot housing prices.

Consumer outlook on future employment plummeted 12 points, with economic activity expected to take a hit from the stricter social distancing imposed to contain the virus spread.

Inflation over the past year was perceived to be 1.9 percent, up 0.1 percentage point from the previous month. Expected inflation for the following year also rose 0.1 percentage point to 1.7 percent.

By Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]