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Retail Sales Decline as Stimulus Looms

SOUTH KOREA
  • Further signs of declining consumer sentiment were visible today as Retail Sales declined in July.
  • Expanding at 6.3%, this was significantly below June’s expansion of 11.1%.
  • The data release provides further support to the proposal of a fiscal stimulus package to support the consumer.
  • Other data was poor with Department Store Sales yoy -6.4% (+5% prior)
  • Discount store sales -7.9% (+2.1% prior)
  • Convenience store sales +2.9% (+3.8% prior)
  • The Head of the ruling People Power Party’s policy committee on Friday stated that the ‘South Korean Government is to announce measures next week to boost domestic consumption.’ Today's release could be a precursor to that announcement.

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