ID :
68112
Sun, 06/28/2009 - 20:51
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Shortlink :
https://oananews.org//node/68112
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Consumers to hold back on spending in H2: report
By Lee Joon-seung
SEOUL, June 28 (Yonhap) -- South Korean consumers may continue to hold back on
spending in the second half due to lingering concerns about the pace of economic
recovery, a report released by the country's largest private economic
organization said Sunday.
The Korea Chamber of Commerce and Industry (KCCI) said 64 percent of people
surveyed in and around Seoul said they planned to limit spending to first-half
levels.
The poll, which surveyed 500 people, showed 24 percent plan to cut back on
spending for the rest of the year, with only 12 percent considering more
expenditures.
"Of the reasons cited for not spending more, 47.5 percent of people polled said
they were concerned about sluggish economic conditions," a KCCI official said.
This was followed by 18.3 percent who worried about drop in income, and 15.0
percent who expressed uncertainties about job security as companies layed off
workers to cut costs, the official said. Other reasons given were a rise in
household debt and declining asset values.
"The numbers indicate that despite some positive signs in production, exports and
leading business indexes, overall consumer sentiment remains frozen," he said.
The KCCI official added that to counteract such concerns the government should
maintain its posture of cutting taxes, maintain a low interest rate policy and
increase public spending to fuel economic growth.
The government said last week that the country may post negative 1.5 percent
growth for 2009, a slight improvement from the on-year contraction of 2 percent
forecast earlier in the year.
The KCCI said that by income level, no household making less than 1 million won
(US$778) a month said they would increase spending, with 31.3 percent claiming
they will have to make more cuts.
Of those that make between 1 and 2 million won, 42.6 percent said they will
reduce expenditure. This is five times the number of people in this earning
bracket that said they may increase their spending.
Only among people that made more than 3 million won were there noticeable signs
of potential spending increases from July through December.
yonngong@yna.co.kr
(END)
SEOUL, June 28 (Yonhap) -- South Korean consumers may continue to hold back on
spending in the second half due to lingering concerns about the pace of economic
recovery, a report released by the country's largest private economic
organization said Sunday.
The Korea Chamber of Commerce and Industry (KCCI) said 64 percent of people
surveyed in and around Seoul said they planned to limit spending to first-half
levels.
The poll, which surveyed 500 people, showed 24 percent plan to cut back on
spending for the rest of the year, with only 12 percent considering more
expenditures.
"Of the reasons cited for not spending more, 47.5 percent of people polled said
they were concerned about sluggish economic conditions," a KCCI official said.
This was followed by 18.3 percent who worried about drop in income, and 15.0
percent who expressed uncertainties about job security as companies layed off
workers to cut costs, the official said. Other reasons given were a rise in
household debt and declining asset values.
"The numbers indicate that despite some positive signs in production, exports and
leading business indexes, overall consumer sentiment remains frozen," he said.
The KCCI official added that to counteract such concerns the government should
maintain its posture of cutting taxes, maintain a low interest rate policy and
increase public spending to fuel economic growth.
The government said last week that the country may post negative 1.5 percent
growth for 2009, a slight improvement from the on-year contraction of 2 percent
forecast earlier in the year.
The KCCI said that by income level, no household making less than 1 million won
(US$778) a month said they would increase spending, with 31.3 percent claiming
they will have to make more cuts.
Of those that make between 1 and 2 million won, 42.6 percent said they will
reduce expenditure. This is five times the number of people in this earning
bracket that said they may increase their spending.
Only among people that made more than 3 million won were there noticeable signs
of potential spending increases from July through December.
yonngong@yna.co.kr
(END)
