Consumer confidence in South Korea
Rising consumer confidence in South Korea
South Korea’s (KORU) consumer confidence index score jumped to 108 in May, compared with 101.2 in the previous month. It was the fourth consecutive increase following three months of decline. A consumer confidence reading above 100 suggests that people are optimistic about the economy.
In May, consumer confidence reached the highest recorded level seen in the last year. The sharp increase in consumer confidence mainly resulted from an improved outlook for future domestic conditions. The future domestic conditions metric gained about 22 points and stood at 111 in May 2017. Current domestic economic conditions rose 13 points to 82 between April and May 2017. Expectations for living standards and household income, as well as current living standards, improved in May 2017. However, expectations for household spending remained the same, at 106.
Optimistic outlook for new president
The improved outlook indicates rising optimism toward President Moon Jae-in’s leadership. This optimism was supported by positive economic data. The president was elected in May 2017, after his predecessor, Park Geun-Hye, was involved in a corruption scandal with a Samsung Electronics (SSNLF) heir, which landed them in jail. In the next article, we’ll look at South Korea’s GDP growth.