Consumer sentiment in South Korea sank to an eight-month low in May as the deadly sinking of the passenger ferry Sewol hurt consumer sentiment, central bank data showed Tuesday.
The consumer sentiment index (CSI) reached 105 this month compared with 108 in April, according to the data from the Bank of Korea (BOK).
The May figure is the lowest since 102 in September 2013 when the index fell by 3 points on-month.
The monthly index is a barometer of consumers' overall economic outlook, living conditions and future spending. A reading above 100 means that optimists outnumber pessimists. The survey, based on a poll of 1,983 households nationwide, was conducted from May 13-20.
A BOK official attributed the fall to the Sewol accident that traumatized the country last month. The 6,825-ton vessel sank off the country's southwest coast on April 16, killing more than 300 people.
"The April survey did not fully reflect the impact of the ferry accident since it was conducted in mid-April. It seems that the sentiment was reflected in the May survey," said the official.
Although the April survey dates covered the days after the sinking, initial news reports incorrectly said most of the passengers had been rescued.
Consumer sentiment has taken a hit following the accident as consumers have refrained from shopping and provincial governments called off festivals.
Earlier this month, the central bank held the benchmark seven-day repo rate steady at 2.5 percent amid fears the ferry sinking will hurt the economy. (Yonhap)