[Economic Outlook] Focus on Production and Consumption Indicator Shocks... Detailed Cashback Implementation Plan Unveiled

Consumer Trend Survey and Business Survey Index Announced One After Another

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Next week, the latest indicators related to industrial activity, consumer and business sentiment will be released. Attention is focused on the extent of contraction in production, consumption, and the psychology of economic agents due to the 4th wave of COVID-19.

First, Statistics Korea will announce the 'August Industrial Activity Trends' on the 30th.

In the July statistics, service sector production maintained an increasing trend, but both production and consumption decreased simultaneously. The key issue is how much the food and accommodation industries were affected by social distancing measures.

The Ministry of Economy and Finance will disclose detailed implementation plans for the Win-Win Consumption Support Fund (credit card cashback) policy on the 27th.

The card cashback policy refunds 10% of the amount spent exceeding 3% more than the individual's average monthly card usage in Q2 (April to June) of this year, up to 100,000 KRW per person per month, as cash-equivalent card points. The refunded card points can be used like cash without significant restrictions on usage.

The Bank of Korea will announce the 'September Consumer Survey Results' on the 28th.

Previously, the August Consumer Confidence Index (CCSI) was 102.5, down 0.7 points from July. It fell sharply by 7.1 percentage points in July due to the 4th wave of COVID-19 and declined for two consecutive months.

Then, on the 30th, the 'September Business Survey Index (BSI)' will be released.

In August, the BSI for business conditions across all industries remained flat at 87 for the second consecutive month, affected by the resurgence of COVID-19 and the holiday season effect.