Consumer sentiment dips to 4-month low in May

South Korea's consumer sentiment fell sharply in May, data from the Bank of Korea (BOK) showed Tuesday, amid growing concerns over an economic slowdown and the escalating trade war between the U.S. and China.

The composite consumer sentiment index came to 97.9 for the month, down 3.7 from the previous month, according to BOK.

The reading marks the lowest since January when the index stood at 97.5. A reading above 100 means optimists outnumber pessimists while a figure below the benchmark means the opposite.

"The consumer sentiment index dropped amid a dip in related indicators due to the escalation of the U.S.-China trade dispute, poor economic performances and a drop in stock prices that worsened people's outlooks on their own financial conditions," BOK said in a press release.

A separate index measuring people's sentiment toward their current economic conditions came to 91 in May, down 2 from a month before, while another index gauging their expectations for conditions in six months down the road shed 3 to 92 over the cited period.

More people also expected their income to dwindle over the next six months with the index measuring their sentiment toward future income losing 2 to 97 in May.

The latest report comes about a month after the central bank said the local economy contracted 0.3 percent in the first quarter of the year from three months earlier, the worst performance in over a decade.

The index measuring people's outlooks on overall economic conditions lost 5 from the month before to 69 in May, while the index on their outlook on future economic conditions lost 6 to 75.

The monthly survey was conducted May 10-17, involving 2,343 households throughout the nation. (Yonhap)