Key facts
- Consumer sentiment rose for the second consecutive month in June.
- The composite consumer sentiment index (CCSI) reached 106.6.
- Strong exports and a stock market rally contributed to the increase.
- South Korea's exports surged 60.4% in the first 20 days of June.
- Consumer prices increased by 3.1% in May.
Consumer sentiment in South Korea has shown a positive trend for the second consecutive month, reaching 106.6 in June. This increase, a gain of 0.5 points from May, is primarily driven by strong export performance and a buoyant stock market, according to the Bank of Korea (BOK).
The composite consumer sentiment index (CCSI) has now stayed above the 100-point threshold, indicating more optimists than pessimists, for two months in a row. The subindex measuring people's assessment of current economic conditions improved by 3 points to 86 in June. However, the outlook for future economic conditions saw a slight dip, falling 1 point to 92.
The BOK noted that despite inflationary pressures from rising global energy prices, robust exports and the stock market rally provided a lift to consumer sentiment. South Korea's exports experienced a significant jump of 60.4% year-on-year in the first 20 days of June, largely due to strong shipments of semiconductors fueled by the artificial intelligence boom. Nevertheless, consumer prices in May rose by 3.1% compared to the previous year, marking the fastest growth in 26 months, prompting the central bank to signal proactive measures to control inflation.