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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH KOREA
South Korean consumer sentiment for July continued to rebound, the headline index printing at 103.2, versus 100.7 in June. July's print is the strongest since April 2022. The first chart below overlays the headline consumer sentiment index against y/y GDP growth. Consumer sentiment tends to trough before GDP growth does and is suggesting, all else equal, better y/y growth momentum as we progress through H2.
- In terms of the detail, most subcomponents were higher, with decent pickups in the expectation for the domestic economy and employment. Spending plans were more muted though, particularly in discretionary areas.
Fig 1: South Korea Headline Consumer Sentiment & GDP Y/Y
Source: MNI - Market News/Bloomberg
- On the inflation front, the expected rate for the next 12 months fell to 3.3%, although this indicator has been following headline inflation in recent years, with a slight lag, see the chart below. Still, the authorities will likely welcome a further downshift in expectations.
- Expected wages continued to tick higher, as did the house price outlook.
Fig 2: South Korean Consumer Inflation Expectations & Headline CPI Y/Y
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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