Korea: Consumer confidence leaps to nearly seven-year high in June
June 27, 2017
The consumer confidence index trended higher for a fourth month running in June as the government unveiled an additional 2017 budget and the country’s stock market rallied to a record high. The index jumped from 108.0 in May to 111.1 in June, the best reading since December 2010. As a result, consumer confidence now sits further above the 100-point threshold that separates optimism from pessimism among Korean households.
The new administration’s pledges to loosen its fiscal stance in a bid to bolster job creation and income growth continue to fuel an upsurge in sentiment. Accordingly, the largest increase in the index was recorded in the current domestic economic conditions subcomponent, which jumped from 82 in May to 93 in June. Consumers’ views on current living standards also improved in June, while their assessments of future living standards and household income and spending were slightly more upbeat.
Author: David Ampudia, Economist