Korea Consumer Sentiment Hits 10-Month High Before Virus Curbs
South Korea’s consumer sentiment rose to the highest since the start of the pandemic.
(Bloomberg) -- South Korea’s consumer sentiment rose to the highest since the start of the pandemic, according to a central bank survey conducted mid-November, showing the economy’s recovery was on track before worsening local outbreaks led to tighter restrictions.
The consumer sentiment index rose by 6.3 points to 97.9 in November, the Bank of Korea said in a Tuesday statement. That’s the highest level since January, and close to the 100-threshold that separates optimism and pessimism.
The survey was conducted Nov. 10-16 when social distancing restrictions had been eased and the economy saw a pickup in activity, the BOK said. Prospects for vaccine development also contributed to the rise in sentiment, according to the central bank.
The government has since tightened virus curbs, with Seoul and its surrounding areas placed under level 2 alert from Tuesday, as the number of daily cases surged to hundreds. Gatherings in high-risk facilities such as night clubs are banned, while dining in at restaurants are prohibited after 9 p.m.
Recent data for the economy have been positive, with exports extending a recovery in November and the Kospi stock index surging to a record. A continued improvement in the outlook hinges on whether South Korea can again succeed in taming infections -- as it did during the first and second waves -- as well as the resilience of global demand.
A breakdown of the sentiment index shows that the biggest contributors to the gain came from households’ assessment of the current economy and their spending projections, followed by the overall economic outlook.
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