Consumer confidence in South Korea plunged in July due largely to growing concerns about the escalating trade war between Washington and Beijing... and signs of an economic slowdown in Korea.
Our Kim Hyesung reports.
South Korea's consumer sentiment in July fell by the steepest margin in 20 months to record an index score of 101.
That's down 4-point-five points from June.
It's also the lowest figure since April 2017 when the country was rattled by a corruption scandal that eventually brought down the former Park Geun-hye administration.
The Bank of Korea attributed the slide to the escalating trade spat between the U.S. and China.... and to Korea's sluggish job growth.
The fight between Korea's top two trading partners and the growing protectionism between the U.S. and the EU are increasing the downside risk to Korea’s export-driven economy.
Sluggish employment figures added to concerns of a possible economic downturn, hurting consumer sentiment.
Between January and June, a monthly average of 142-thousand new jobs were added-- the slowest growth since the 2008 global financial crisis.
The sub-index for households' economic outlook fell nine points to 87, and the sub-index on current economic conditions fell seven points.
Despite the government's efforts to create jobs and boost wages, outlook on job opportunity dropped six points to 87, the lowest figure since April 2017.
The expected inflation rate for the following year stood the same as in June at two-point-six percent.
Kim Hyesung, Arirang News.