South Korean consumers became less optimistic about the local economy in August, a central bank survey showed on Friday, as worries about the government's latest measures to cool housing debt and flaring US-North Korea tensions pressured sentiment.
The Bank of Korea's composite consumer sentiment index (CCSI) stood at 109.9 for August, down from July when it hit a six-and-a-half-year high of 111.2. The index hit its lowest level since end-May. The August figure, however, was still well above 100. A reading above 100 level indicates more consumers expect better economic conditions in coming months rather than a deterioration in the economy.
After five months of staying below 100 levels, the index has been hitting triple-digits since April. By end-August, households' perception on economic conditions deteriorated to 104 from 109 in July, the lowest since April. Their current financial standing and perception of it also edged lower from a month earlier.