South Korea’s November consumer confidence to be released
The Bank of Korea will publish their consumer confidence index for November today.
Consumer confidence is a leading indicator that can predict the health of an economy based on consumer spending. Last month, South Korean consumer confidence jumped by the highest amount since 2009 when the country rebounded from recession. The current boost in confidence is buoyed by a rebound in the burgeoning Korean export market. Today’s figures show a cautiously optimistic economy, indicating that future confidence may be shaky as the country’s COVID-19 caseload surges.
Having been internationally lauded for its swift and effective response to the pandemic, Seoul is now considering the economic effects of new social distancing measures. Owing to strong testing, contact tracing, quarantine orders and near universal mask-usage, South Korea has experienced 30,403 cases and 503 deaths, a figure far eclipsed by other developed nations. Investors should look to consumer confidence as a tool to assess the perceived efficacy of these implemented measures, if the figure goes up despite a surge in cases, they should expect a stronger economic finish for the year.
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