A large promotional banner announcing major discount events for the “Korea Grand Festival,” South Korea’s version of Black Friday, is displayed at a major supermarket in Seoul on October 29. (Yonhap)
SEOUL, Nov. 25 (Korea Bizwire) — South Korean consumer confidence climbed to its highest level in eight years this month, buoyed by easing trade uncertainty and stronger-than-expected economic data, according to a Bank of Korea survey released Tuesday.
The central bank’s Composite Consumer Sentiment Index (CCSI) rose to 112.4 in November, up 2.6 points from October and marking its highest reading since November 2017. The index had slipped for two consecutive months before rebounding in November. A reading above 100 indicates consumer sentiment is more optimistic than the long-term average.
Of the six components that make up the index, expectations for future economic conditions posted the largest improvement, jumping 8 points to 102. Assessments of current economic conditions, household income expectations and future living standards also rose. Current living conditions and expected household spending remained unchanged.
Lee Hye-young, who leads the Bank of Korea’s economic sentiment survey team, attributed the rebound to the recent resolution of U.S.–Korea tariff negotiations and third-quarter GDP growth that exceeded earlier projections. She noted that sentiment had fallen sharply in recent months amid political turmoil but has since recovered as major sources of uncertainty have dissipated.
The outlook for housing prices weakened slightly, with the housing price expectation index falling to 119 from 122 in October. While the decline marks a reversal from last month’s surge, it remains well above levels seen in July, following the government’s June 27 housing measures.
Expectations for future interest rates edged up, with the six-month interest rate outlook rising from 95 to 98. Consumer inflation expectations for the year ahead held steady at 2.6 percent.
M. H. Lee (mhlee@koreabizwire.com)