June Consumer Sentiment Hits 4-Year High... Housing Price Outlook Soars to 2021 'Panic Buying' Levels

June Consumer Sentiment Index (CCSI) at 108.7
Highest in Four Years Since June 2021 (111.1)
Housing Price Outlook Soars to October 2021 Levels
Expectations for Second Supplementary Budget and New Administration's Policies

This month, the Consumer Composite Sentiment Index (CCSI) surged significantly for the second consecutive month, reaching its highest level in four years. The resolution of political uncertainty, which had previously dampened sentiment due to the presidential election, as well as expectations for the new administration's economic policies?including the formulation of a second supplementary budget?were cited as contributing factors. However, concerns about the spread of geopolitical risks in the Middle East, which emerged toward the end of the survey period, were not fully reflected in this survey.

Consumer Sentiment Index at 108.7... Highest Since June 2021

According to the "June 2025 Consumer Survey Results" released by the Bank of Korea on the 24th, this month's CCSI stood at 108.7, up 6.9 points from the previous month. Following last month, when the index jumped 8 points and exceeded the baseline of 100, this month again saw a sharp increase, marking the highest level since June 2021 (111.1), a four-year high. The CCSI is a sentiment indicator calculated using six major indices that make up the Consumer Survey Index (CSI). With the long-term average set as the baseline value of 100, a reading above 100 indicates optimism compared to the long-term average, while a reading below 100 indicates pessimism.

The CCSI, which had remained above 100 until November last year, plunged to 88.2 in December as consumer sentiment cooled due to the 12·3 Martial Law Incident, and stayed below the baseline for five months through April this year. However, last month, factors such as the easing of trade risks?including the US mutual tariff suspension?and the passage of the first supplementary budget in the National Assembly, as well as expectations for the launch of the new administration, pushed the index back above the baseline for the first time in six months. Lee Hyeyoung, head of the Economic Sentiment Survey Team at the Economic Statistics Department, explained, "This month, expectations for the new administration's economic policies, such as the formulation of a second supplementary budget, played a role," adding, "External risk factors, such as the Middle East war that began on the 13th toward the end of the survey period, were not significantly reflected in this survey."

Yonhap News Agency

Housing Price Outlook Soars to October 2021 'Panic Buying' Levels

By sector, the Housing Price Outlook CSI jumped to 120. As apartment prices continued to rise in some areas, including Seoul and the greater metropolitan area, the nationwide apartment sales price index rose by 9 points. This is the highest level since October 2021 (125), when even those in their 20s and 30s joined the 'panic buying' trend. Lee noted, "The Housing Price Outlook CSI is significantly above its long-term average (107)," and emphasized, "Given the continued upward trend, this is an area that warrants close attention."

The Current Economic Assessment CSI, which compares the present situation to six months ago, rose by 11 points to 74, due to the resolution of political uncertainty and signs of a recovery in consumption. The Future Economic Outlook CSI, which projects the economic situation six months ahead, also surged by 16 points to 107, driven by expectations for the second supplementary budget and the new administration's economic policies.

The improvement in the Consumer Spending Outlook CSI (110) is fueling expectations for a recovery in private consumption. Lee commented, "This item is closely linked, on a quarterly basis, to private consumption," but cautioned, "Since expectations are heavily reflected in this figure, we need to see how much it will translate into actual spending." The Current Household Savings CSI (96) and Household Savings Outlook CSI (100) both reached their highest levels since February 2011 and January 2011, respectively. These results reflect expectations for rising stock prices and stable inflation.

The expected inflation rate for the next year (2.4%) fell by 0.2 percentage points from the previous month, as consumer price inflation slowed due to continued declines in agricultural and petroleum product prices, as well as the government's ongoing price stabilization efforts. Both the three-year and five-year expected inflation rates also decreased by 0.1 percentage points from the previous month, to 2.4% each. The items most frequently cited as likely to influence consumer price inflation over the next year were agricultural, livestock, and fisheries products (51.5%), public utility charges (44.4%), and industrial products (35.5%). Compared to the previous month, the proportion of responses citing rent increased by 3.3 percentage points. In contrast, the shares citing petroleum products (-4.0 percentage points) and public utility charges (-2.6 percentage points) decreased.

Lee added, "Next month, the mutual tariff suspension period with the US will end, and Middle East risks have recently intensified, so we need to watch whether consumer sentiment will continue its upward trend."

This survey was conducted from the 10th to the 17th of this month, targeting 2,500 households in cities nationwide, with 2,289 households responding.