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Consumer sentiment falls to 10-month low amid Middle East crisis

Published: 25 Mar. 2026, 09:00 Updated: 25 Mar. 2026, 18:13

Customers look at meat products at a supermarket in Seoul on March 16. [YONHAP]

Consumer sentiment fell to a 10-month low in March, as the conflict in the Middle East and high oil prices stoked concerns about inflation and broader economic impacts, the Bank of Korea (BOK) said Wednesday.

The composite consumer sentiment index (CCSI) came to 107 this month, down 5.1 points from February, according to a survey by the BOK.

It marked the lowest level since May last year, when the index stood at 101.7. The decline also represented the sharpest monthly drop since December 2024, when the index fell 12.7 points following then-President Yoon Suk Yeol's martial law declaration.

A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 signals the opposite.

“Despite solid exports, negative economic assessments increased as the conflict in Iran drove up global oil prices and heightened volatility in financial markets," Lee Heung-hoo, chief of the BOK's economic sentiment survey team, said.

“The forward-looking consumer sentiment index also fell sharply, weighed down by concerns over inflationary pressures and a potential economic slowdown," he added.

The U.S.-Israeli strikes on Iran late last month have escalated into a broader regional conflict, with global oil prices surging as the Strait of Hormuz, a crucial oil transit route, has been effectively shut.

Yonhap