SOUTH KOREA: Consumer Confidence Up; Rate Hikes Not Hurting
* The South Korea Septmner Consumer Sentiment Index rebounded to 106.6, climbing 2.1 points from August (104.5). The index sits above the 100-point threshold, it shows that optimists continue to outnumber pessimists relative to the long-term historical average. * The main driver behind this month's recovery is South Korea's booming technology sector. A global artificial intelligence-driven semiconductor boom has powered surging exports. * The BOK noted that this chip-led manufacturing strength has successfully boosted facility investment and local consumption, filtering down into the broader public mindset as strong hopes for wage and income growth. As a result, the Household Income Outlook Index climbed 2 points to 102 * Whereas previous survey's have been dramatically impacted by KOSPI volatility, the Septmber survey seemingly saw less of an impact as vol declined further. * One anomaly in the data is the Housing Price Outlook Index, which held completely flat at a high of 125. This marks the sixth consecutive month that housing optimism has remained well above the baseline. This is defying aggressive government cooling measures and back-to-back interest rate hikes by the central
5). The index sits above the 100-point threshold, it shows that optimists continue to outnumber pessimists relative to the long-term historical average. * The main driver behind this month's recovery is South Korea's booming technology sector. A global artificial intelligence-driven semiconductor boom has powered surging exports.
* The BOK noted that this chip-led manufacturing strength has successfully boosted facility investment and local consumption, filtering down into the broader public mindset as strong hopes for wage and income growth. As a result, the Household Income Outlook Index climbed 2 points to 102 * Whereas previous survey's have been dramatically impacted by KOSPI volatility, the Septmber survey seemingly saw less of an impact as vol declined further. * One anomaly in the data is the Housing Price Outlook Index, which held completely flat at a high of 125. This marks the sixth consecutive month that housing optimism has remained well above the baseline.
This is defying aggressive government cooling measures and back-to-back interest rate hikes by the central bank. 7%. However, this stability masks an active tug-of-war between opposing global and local economic forces * This also comes on the back of BOK rate hikes, and is suggestive that for now, the consumer can handle more rate rises.