#ConsumerConfidence
Consumer confidence
Consumer confidence has been
declining in both the United States and
South Korea as of recent reports.
In the United States, the Consumer
Confidence Index (CCI) declined by 7.0
points in February to 98.3 (1985=100),
marking the third consecutive monthly
decline.
The Present Situation Index, which
reflects consumers' assessment of
current business and labor market
conditions, fell to 136.5, while the
Expectations Index, which gauges
short-term outlook for income,
business, and labor market conditions,
dropped to 72.9
This is the first time since June 2024
that the Expectations Index has fallen
below the threshold of 80, which
usually signals a recession ahead.
In South Korea, consumer confidence
increased to 95.20 points in February
from 91.20 points in January 2025, but
it is still below the expected 100
points by the end of the quarter.25
The decline in consumer confidence in
the U.S. is attributed to pessimism
about future business conditions,
employment prospects, and income
expectations.36 Additionally, inflation
expectations surged to 6% in February,
up from 5.2% in January, reflecting
concerns about sticky inflation and
recent price increases for household
staples like eggs, as well as the
expected impact of tariffs.
In South Korea, the increase in
consumer confidence might be due to
improved perceptions of current
economic conditions, although the
overall confidence level remains below
the neutral point.
Consumer confidence is an important
economic indicator as it reflects
consumers' willingness to spend,
which can influence overall economic
growth and stability.
