South Korea’s consumer sentiment strengthened sharply in November, reaching its highest level in 8 years after the resolution of a tariff dispute with the United States and stronger-than-expected third-quarter growth improved the economic outlook.
The Bank of Korea said the Consumer Composite Sentiment Index rose to 112.4, reversing declines in September and October and marking the strongest reading since 2017.
The index, similar in purpose to consumer confidence measures widely used in major economies, tracks household assessments of financial conditions, spending expectations, and views on the broader economic environment. A level above 100 signals more optimism compared with the long-term average.
Expectations for future economic conditions posted the largest increase, rising 8 points to 102. Assessments of current economic conditions, the outlook for household income, and expectations for living standards also gained. Measures of current living conditions and spending plans showed no change.
A Bank of Korea official said the improvement reflected the recent tariff agreement with Washington and a third-quarter GDP reading that surpassed earlier projections.
Sentiment had weakened earlier in the year amid political instability and trade-related uncertainty, but easing pressures in those areas contributed to a notable rebound supported partly by base effects.
Housing expectations softened, with the housing price outlook index slipping to 119 after a rapid jump in October, though it remains above levels recorded during the summer.
Expectations for interest rates six months ahead increased from 95 to 98, while the inflation outlook for the next year remained steady at 2.6%.
