Seoul: South Korea's consumer sentiment improved by the largest margin in nearly four years in February on hopes for a stable domestic political situation following the martial law chaos and the government's support for industries, a central bank poll showed Thursday. The composite consumer sentiment index stood at 95.2 this month, up 4 points from the previous month's 91.2, according to the survey conducted by the Bank of Korea (BOK).
According to Yonhap News Agency, the February reading marked the largest gain since June 2021, when the figure rose by 5.4 points. It also logged the second monthly gain, as the index rebounded in January from a two-year low of 86.6, when President Yoon Suk Yeol's shocking martial law declaration and his subsequent impeachment dented the market. A reading above 100 means optimists outnumber pessimists, while a reading below the benchmark means the opposite.
The latest poll found that consumers expect better economic conditions, as the political instability has been eased and the government came up with a set of measures to prop up exporters and other industries amid heated global competition. "Uncertainties remain high regarding the Donald Trump administration's tariff policy and the domestic political situation. We will closely monitor how those factors affect consumer sentiment," a BOK official said.
The BOK earlier forecast the South Korean economy to expand 1.9 percent in 2025, slowing from last year's 2.2 percent expansion. BOK chief Rhee Chang-yong has hinted at further slashing the forecast to around 1.6 percent, as the country is facing multiple challenges, including sweeping tariffs by the new Donald Trump administration and weak domestic demand.