Consumer sentiment hits 8-year high on US tariff deal, robust Q3 growth
President Lee Jae Myung, right, shakes hands with U.S. President Donald Trump, during a dinner banquet for state leaders participating in this year's summit of the Asia-Pacific Economic Cooperation forum at the Hilton Hotel in the southeastern city of Gyeongju, Oct. 29. Yonhap
South Korea's consumer sentiment rose to an eight-year high in November, buoyed by the country's tariff agreement with the United States and stronger-than-expected quarterly economic growth, the central bank said Tuesday,
The composite consumer sentiment index (CCSI) climbed to 112.4 this month, up 2.6 points from October, according to a survey by the Bank of Korea (BOK).
It marks the highest reading since November 2017 and the first increase in three months.
The index had risen for five consecutive months through August on the back of solid exports and optimism over the government's supplementary budget. It then declined over the following two months as concerns grew over a potential export slowdown caused by the U.S. tariff scheme and a slump in the construction sector.
A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 signals the opposite.
"The increase was mainly attributable to the tariff agreement with the U.S. and the third-quarter gross domestic product growth exceeding expectations," a BOK official said.
After monthslong negotiations over the Donald Trump administration's aggressive tariff policies, Seoul and Washington finalized a deal and released a joint fact sheet earlier this month outlining South Korea's $350 billion investment plans in the U.S., in exchange for a reduction of U.S. tariffs from 25 percent to 15 percent.
In the July-September period, real gross domestic product (GDP), a key gauge of economic growth, rose 1.2 percent from the previous quarter, marking the fastest quarterly expansion since the first quarter of 2024, according to the BOK data.
It also beat the BOK's expectation of a 1.1 percent gain.