Consumer sentiment rises for 3rd month in July on strong exports, investment plans
People shop at a discount retailer in Seoul, July 21. Yonhap
Consumer sentiment rose for the third consecutive month in July on strong exports and large-scale investment plans, the central bank said Tuesday.
The composite consumer sentiment index (CCSI) stood at 106.8 this month, up 0.2 points from June, according to a survey by the Bank of Korea (BOK).
The index has risen for three straight months since May and stayed over the 100-point mark over the three-month period.
A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 suggests the opposite.
The subindex for people's assessment of current economic conditions came in at 84 in July, down 2 points from a month earlier.
The index for people's outlook for future economic conditions remained unchanged at 92 over the same period.
"Despite rising inflation and the volatile stock market, strong chip-led exports, large-scale investment plans and expectations for income hikes pushed up consumer sentiment for the third consecutive month," the BOK said.
South Korea's consumer prices rose 3.2 percent in June from a year earlier, marking the steepest growth since December 2023.
The benchmark Korea Composite Stock Price Index (KOSPI) has dropped nearly 20 percent in July amid foreign selling and concerns about the future of artificial intelligence (AI) infrastructure investment.
However, the country's exports remained robust as outbound shipments shot up 52.3 percent from a year earlier in the first 20 days of July as demand for semiconductors nearly tripled.
Large tech companies, including Samsung Electronics and SK hynix, earlier announced large-scale investment plans to expand memory capacities and meet booming demand.