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(Seoul=Yonhap Infomax) Jin Woo Oh – South Korea’s consumer sentiment index surged to its highest level in nearly eight years in November, buoyed by the resolution of tariff negotiations with the United States.
Expectations for further increases in housing prices, however, moderated for the first time in four months.
According to the Bank of Korea’s “Consumer Survey for November 2025” released on the 25th, the Composite Consumer Sentiment Index (CCSI) rose 2.6 points from the previous month to 112.4.
This marks the highest reading since November 2017, when the index stood at 113.9.
The CCSI gauges consumers’ overall assessment of economic conditions. A reading above 100 indicates optimism compared to the long-term average (January 2003–December 2024), while a figure below 100 signals pessimism. The index is a composite of six key indicators: current living conditions, outlook for living conditions, household income outlook, consumption expenditure outlook, current economic assessment, and future economic outlook.
The Bank of Korea attributed the improvement in sentiment to the successful conclusion of tariff talks with the US and stronger-than-expected third-quarter GDP growth.
Breaking down the data, the Current Economic Assessment CSI climbed 5 points from October to 96, the highest since November 2017. The Future Economic Outlook CSI jumped 8 points to 102, reflecting reduced trade-related uncertainties following the US-Korea tariff agreement and the US-China trade deal.
The Current Living Conditions CSI remained unchanged at 96, while the Living Conditions Outlook CSI edged up 1 point to 101. The Household Income Outlook CSI rose 2 points to 104, and the Consumption Expenditure Outlook CSI held steady at 110.
Expectations for housing price increases cooled somewhat.
The Housing Price Outlook CSI fell 3 points to 119 in November, the first decline since July, when the government announced the June 27 real estate measures. The index had dropped from 120 in June to 109 in July, then rebounded steadily to reach 122 in October.
The Bank of Korea noted that the index retreated as the pace of apartment price gains in Seoul and nationwide slowed following the government’s October 15 real estate policy announcement.
Lee Hye-young, head of the Bank of Korea’s Economic Sentiment Survey Team, said, “Although housing price expectations declined from the previous month, they remain higher than immediately after the June 27 measures. The expectation for rising home prices is still strong.”
The Interest Rate Outlook CSI rose 3 points to 98, the highest since February.
Inflation expectations remained largely stable. The one-year ahead expected inflation rate was unchanged at 2.6%. The three-year and five-year ahead expected inflation rates both edged down 0.1 percentage point to 2.5%.
jwoh@yna.co.kr
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