South korea: South Korea's consumer sentiment experienced its first decline in six months in September, amid ongoing concerns about a potential slowdown in exports following the United States' introduction of a new tariff scheme, as reported by the central bank on Wednesday.
According to Yonhap News Agency, the composite consumer sentiment index (CCSI) was recorded at 110.1 for September, reflecting a 1.3-point decrease from August, based on a survey conducted by the Bank of Korea (BOK). This decline follows a five-month period of growth in the index, which had reached its highest point since January 2018 due to strong export performance and optimism surrounding the government's supplementary budget.
The CCSI is a measure where a reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 suggests the opposite sentiment. The index had previously dropped below 90 in December, after the imposition of martial law by former President Yoon Suk Yeol, but had rebounded to over 100 by May.
A BOK official noted, "The decline came as concerns grew over a slowdown in exports due to the impact of new U.S. tariffs, as well as the prolonged slump in the construction sector." The United States has agreed to implement a 15 percent tariff on South Korean goods, reduced from the initially proposed 25 percent. In response, Seoul has committed to establishing a US$350 billion fund for U.S. investments. Both nations are currently engaged in bilateral discussions to finalize the details of this agreement, though no formal agreement has been reached yet.