Solid export gains mask weakening sentiment as tariff negotiations and trade risks dampen household outlook

South Korea’s economy grew at the fastest pace in a year-and-a-half in the third quarter, supported by strong exports and firm private consumption, preliminary data from the Bank of Korea (BOK) showed Tuesday. Real gross domestic product expanded 1.2% on-quarter and 1.7% on-year from July to September, beating the central bank’s projection of 1.1%. Private consumption rose 1.3%, government spending 1.2% and exports 1.5%, offsetting a 0.1% decline in construction investment. Facilities investment jumped 2.4%, driven by semiconductor equipment and machinery.

In a separate release, the BOK said the Composite Consumer Sentiment Index fell to 109.8 in October, down 0.3 points from September and marking a second straight monthly drop. The central bank attributed the decline to trade-related uncertainty stemming from prolonged tariff negotiations with Washington and renewed U.S.-China tensions. The latest figures highlight an economy expanding on export momentum even as households grow more cautious about future conditions.

South Korea’s economy grew at the fastest pace in a year-and-a-half in the third quarter, supported by strong exports and firm private consumption, preliminary data from the Bank of Korea (BOK) showed Tuesday. Real gross domestic product expanded 1.2% on-quarter and 1.7% on-year from July to September, beating the central bank’s projection of 1.1%. Private consumption rose 1.3%, government spending 1.2% and exports 1.5%, offsetting a 0.1% decline in construction investment. Facilities investment jumped 2.4%, driven by semiconductor equipment and machinery.

In a separate release, the BOK said the Composite Consumer Sentiment Index fell to 109.8 in October, down 0.3 points from September and marking a second straight monthly drop. The central bank attributed the decline to trade-related uncertainty stemming from prolonged tariff negotiations with Washington and renewed U.S.-China tensions. The latest figures highlight an economy expanding on export momentum even as households grow more cautious about future conditions.

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