South Korea November consumer sentiment index surges to near 7-yr high

By: | Updated: November 24, 2017 2:59 AM

South Korea's November consumer sentiment index jumped to near seven-year high, a central bank survey showed on Friday, as surprisingly strong economic growth at home sparked optimism among consumers

The strong economic growth has sparked optimism among consumers (Source: Reuters)

South Korea’s November consumer sentiment index jumped to near seven-year high, a central bank survey showed on Friday, as surprisingly strong economic growth at home sparked optimism among consumers. The Bank of Korea’s composite consumer sentiment index (CCSI) rose to 112.3 for November, its highest since December 2010 at 112.7. A reading above the 100-mark means more consumers are optimistic about economic conditions in coming months. The BOK’s survey came after the release of South Korea’s GDP data for the September quarter, which grew fastest in seven years led by exports boom in the country’s electronics sector. This also made many to expect South Korea’s central bank to raise its current record-low interest rates for the first time in over six years. The BOK’s November policy meeting will be on next Thursday. Households’ perceptions of current economic conditions briskly rose to 98 index points from 91 a month ago, and their future prospects also jumped to stand at 108 versus 99 in October. Their prospects about interest rates also rose 8 index points to 130.

The survey also found that the median expectation for the inflation rate over the next 12 months was 2.5 percent in November, slightly off from October reading. The central bank’s 2017 inflation target is 2.0 percent.

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