SEOUL, Oct. 27 (Xinhua) -- South Korea's consumer sentiment weakened in October owing to domestic stock market corrections and persistent geopolitical risks in the Middle East, central bank data showed Tuesday.
The composite consumer sentiment index (CCSI), which gauges the sentiment of consumers over the economic situation, fell 1.2 points over the month to 105.4 in October, turning downward from an increase of 2.1 points in the previous month, according to the Bank of Korea (BOK).
The reading stayed above the benchmark 100, which indicated that optimists outnumbered pessimists, but stubborn geopolitical tensions and volatile local stock market chipped away at consumer confidence.
The results were based on a survey of over 2,000 households nationwide conducted between Oct. 13 and Oct. 20.
The sub-index for prospective household income edged down 1 point to 101, pressured by equity market corrections and climbing market interest rates.
The index for prospective domestic economic conditions declined 2 points to 88 due to stock market volatility and heightened uncertainties over the Middle East conflicts that overshadowed the positive impact from robust exports.
The BOK delivered back-to-back rate hikes in July and August, raising its benchmark interest rate to 3.00 percent.
Inflation expectations, which measure the outlook among consumers over headline inflation for the next 12 months, stood unchanged at 2.7 percent in October compared to the previous month.
Upward pressures from higher global oil prices were neutralized by downward factors, such as the BOK's rate hikes and the government's maximum petroleum price ceiling policy. ■
