Propensity to Consume Calming

Climbing sentiment to consume is dropping.

According to the result of `consumer sentiment in April` that the National Statistical Office (NSO) announced on the 14th, the consumer survey index (CSI), which shows the consumption sentiment after 6 months, inched down to 109.4 from record high 109.7 in the previous month, ending 6 months’ moving upward.

CSI has risen after the hitting bottom at 92.1 in September last year. CSI above 100 means consumers expecting more consumption outnumber those expecting less consumption.

Moon Kwan-Soon chief of Statistical Analysis Division of NSO said, “CSI is still in a high level that the index doesn’t show the consumption sentiment crushed but calmed, and we should watch the movement for one or two months more. ”

The sub-index for the economic prospects fell to 120.7 from 122.1 in March, showing diminishing expectation for business. However, the result has not so much gap with record high 123.8 in May 1999.

The sub-index for outgo also dropped to 110.2 from 111.4 in the previous month falling after 6 months since October last year. But the index for purchasing of durable consumer goods recovered at 99.3 from 97.6.

The index for income crawled to 107.2 from 105.9 that more consumers expect for the increase of income comparing with that 6 months ago.

Joong-Hyun Park sanjuck@donga.com