South Korea's consumer confidence rose last month to the highest in more than five years, an indication that households may increase spending and drive economic growth.
The sentiment index advanced to 105.9 from 104 in December, the National Statistical Office said yesterday in Gwacheon. A reading higher than 100 signals optimists outnumber pessimists.
The lowest jobless rate in five years and wage gains are encouraging consumers to buy more cars, clothes and luxury goods even as fuel costs climb. The government forecasts domestic demand will account for 90 percent of an estimated 4.8 percent economic growth rate this year as exports cool.
"It's good news that consumers don't seem very concerned about high oil prices and a possible US recession," said Go You-sun, an economist at Daewoo Securities Co in Seoul. "The economy is still on track with strong exports and consumer confidence."
The sentiment index was at the highest level since September 2002, the statistics bureau said.
The benchmark KOSPI index rose 0.6 percent to 1,649.88. The yield on the benchmark five-year government bond fell 1 basis point to 5.18 percent.
South Korea's economic growth accelerated to 1.5 percent last quarter from the third quarter's 1.3 percent pace, driven by the biggest increase in exports in four years and a pickup in corporate investment.
South Korean Finance Minister Kwon Okyu said last month that rising oil costs and the US housing slump posed risks to the economy's expansion. As exports slow, the nation will be increasingly reliant on corporate and consumer spending to extend its longest economic expansion in more than 15 years.
President-elect Lee Myung-bak, whose five-year term begins on Feb. 25, aims to boost economic growth by easing regulations to encourage companies to invest and hire more workers.
Lee won the Dec. 19 election after pledging to increase annual economic growth to 7 percent from about 5 percent now and to double per capita income to US$40,000 by 2017.
"The index seems to have risen as people have high expectations for the new government," said Kim Young-noh, an official at the statistics office.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS