“Consumers view on their financial situation got worsened as recent oil price drop and China’s sluggish economy weighed on their outlook for the country’s economy,” Joo Sung-jae, a BOK official said.

The January index reading was the lowest since July last year when it slipped to 100 as the sentiment was hurt by the outbreak of Middle East respiratory syndrome.

A reading above 100 means optimists outnumber pessimists.

The key measure of economic confidence had been on a steady rise between June and November, buoyed by government’s efforts to stimulate its economy such as temporary tax cuts and retail sales promotions but it has retraced the improved sentiment since December.

The monthly index which is based on a survey of 2,200 households throughout the country also showed Koreans’ pessimistic view on career prospects, which fell by seven points to 77, the lowest figure since March 2009.

Looking at some of the components of the report, the present situation index fell to 68, compared to December’s reading of 75. The expectations index also dropped, to a reading of 78, down 6 points from the previous level of 84.

Respondents’ outlook on their future income also slipped to 100 from 101 in December and 102 the previous month.

By Park Han-na (hnpark@heraldcorp.com)