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ANZ-Roy Morgan South Korean Consumer Confidence Rebounded as MERS Wanes

The monthly ANZ-Roy Morgan South Korea Consumer Confidence Index is based on 1,000 telephone interviews conducted throughout South Korea. Men and women aged 14 and over were randomly selected during the month of July 2015.
HIGHLIGHTS

  • ANZ-Roy Morgan South Korea Consumer Confidence jumped 5.5pts to 81.8 in July, the highest level for nearly a year since September 2014. The rise was driven by increasing confidence about Korean economy over the next 12 months and five years.

  • In terms of personal finances, 10.7% (down 0.1ppt) of respondents said their families are ‘better off’ financially than this time last year, compared to 42.6% (up 1.6ppts) that said their families are ‘worse off’.

  • Over a quarter of respondents, 28.1% (up 4.2ppts) expect their families will be ‘better off’ financially this time next year, the lowest level since October 2014. Meanwhile, 30.8% (down 4.3ppts) expect their families to be ‘worse off’ financially this time next year, the lowest record of this indicator for nearly a year since September 2014.

  • Thinking of economic conditions going forward, 21.6% (up 5ppts) of respondents expect South Korea will have ‘good times’ economically over the next 12 months, compared to 63% (down 4ppts) expecting ‘bad times’.

  • Over the longer term, 40.7% (up 4.9ppts) of respondents expect South Korea will have ‘good times’ economically during the next five years and 38.7% (down 7.3ppts) expect ‘bad times’.

  • In July, 27.4% (up 1.9ppts) of respondents say now is a ‘good time to buy’ major household items, while 44.2% (up 2ppts) say now is a ‘bad time to buy’ major household items, reaching a record high.

  • Inflation expectation declined 0.2ppts to 2.6% in July.
ANZ’s Senior Economist Raymond Yeung said:

“There has been no new MERS cases reported since 4 July and the negative impact on consumer confidence has started to wane. In addition, the launch of government stimulus package has also lifted the household sentiment. Today’s reading is encouraging.

"However, the overall economic condition remains challenging. As an export oriented economy, South Korea’s trade data remains the most critical indicator shaping the economic outlook. If exports fail to improve in Q3, it may not be able to achieve 2.8% growth, a level predicted by the Bank of Korea. This downside risk will continue to prompt the central bank to stay accommodative. Even though the policy interest rate is at all-time low of 1.50%, another rate cut is still possible.”

ANZ-Roy Morgan South Korean Consumer Confidence - July 2015 - 81.8

ANZ-Roy Morgan South Korean Consumer Confidence Rating - July 2015 - 81.8

Click to view the latest ANZ-Roy Morgan South Korean Consumer Confidence Release PDF - July 2015.


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The latest Roy Morgan Consumer Confidence Monthly Report is available on the Roy Morgan Online Store. It provides demographic breakdowns for Age, Sex, State, Region (Capital Cities/ Country), Generations, Lifecycle, Socio-Economic Scale, Work Status, Occupation, Home Ownership, Voting Intention, Roy Morgan Value Segments and more.

You can also view our monitor of Monthly Australian Unemployment & Under-employment Estimates.