Domestic Consumption Declines in H1 amid Prolonged Inflation, High Interest Rates

Photo : YONHAP News

Domestic consumption declined during the first half of this year amid a prolonged period of inflation and high interest rates.

Based on an analysis of data from Statistics Korea on Wednesday, the Korea Enterprises Federation said the Retail Sales Index for the first half dropped two-point-four percent from a year earlier.

The index is based on sales data from two-thousand-700 businesses that sell personal and consumer goods. 

A negative figure means consumption fell.

The index for the January-to-June period declined for the third consecutive year, hitting its lowest point since 2003, when it also posted minus two-point-four percent.

Consumption of heating devices and other durables increased ten-point-three percent on-year, while furniture consumption rose eight-point-seven percent and consumption of medical supplies rose five-point-one percent. 

The figure for automobiles, however, dropped eight-point-one percent, and consumption of leisure items declined five-point-three percent.

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