S.Korea's consumer confidence falls in 3 months on corporate restructuring

Confidence among South Korean consumers fell for the first time in three months as the government is pushing for corporate restructuring in shipping and shipbuilding industries, central bank data showed on Thursday.

The composite consumer sentiment index (CCSI) stood at 99 in May, down 2 points from a month earlier, according to the Bank of Korea (BOK). It was based on a survey of 2,042 households nationwide.

The index declined this month after rising from 98 in February to 100 in March and 101 in April. The reading below 100 means pessimists outnumbered optimists.

The decline came as the government-led corporate restructuring boosted concerns about massive layoffs that would led to the weakening of private consumption and facility investment.

South Korea's exports, which account for about half of the export-driven economy, posted a double-digit slump in May, keeping a downward trend amid the global economic slowdown.

The index on current economic conditions tumbled 4 points in May from a month earlier at 70, with the reading for prospective economic situations declining 6 points to 80.

The employment outlook index dipped 8 points from a month ago to 74 in May, the lowest since March 2009. It indicated worry about massive layoffs caused by restructuring among major shipping firms and shipbuilders.

Inflation expectations, which reflect consumers' outlook for headline inflation in the next 12 months, stood at 2.4 percent in May, down 0.1 percentage point from the previous month. Enditem