Consumer Sentiment Shows Improvement in May 2023

Why it matters: The May 2023 Composite Consumer Sentiment Index (CCSI) rose to 98.0, an increase of 2.9 points from the previous month.

This increase in consumer sentiment could impact spending behavior and, in turn, the economic outlook.

Key points:

• Consumer sentiment regarding current living standards, future expectations, future household income, and future household spending increased slightly in May from the previous month.

• The most significant improvements were seen in consumer sentiment regarding current and future domestic economic conditions, which rose six points from the previous month.

• The expected inflation rate over the next year will be 3.5%.

• The survey was conducted May 8-15 and included 2,500 households nationwide, with 2,351 respondents.

The Big Picture: The rise in consumer sentiment in the May 20-23 survey is a promising sign for domestic economic conditions.

Continued monitoring of these trends is critical. Changes in the index can be affected by several factors, including changes in economic conditions and sampling methodology.

Detailed data is available from the Bank of Korea's Economic Statistics System.