Consumer sentiment rises for third month in July despite inflation, volatile stock market

Consumer sentiment rose for the third consecutive month in July on strong exports and large-scale investment plans, the central bank said on 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 remained over the 100-point mark during the period.

A reading above 100 indicates that optimists outnumber pessimists, and 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.

Korea’s consumer prices rose 3.2 percent in June from a year earlier, marking the steepest growth since December 2023.

The benchmark Kospi has dropped nearly 20 percent in July due to foreign selling and concerns about the future of AI infrastructure investment.

However, the country’s exports remained robust. 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.

Yonhap