Unfavourable weather cuts private consumption growth this year: BOK

Seoul, Sep 29 (IANS) Extreme heat waves and other weather conditions this year have reduced the annual private consumption growth rate by about 0.09 percentage point, the central bank said on Monday.

A cold wave in the first quarter and a summer heat wave lowered annual private consumption growth by 0.03 and 0.15 percentage point, respectively, according to a report by the Bank of Korea (BOK), reports Yonhap news agency.

Conversely, below-average rainfall this year increased consumption growth by 0.09 percentage point, it showed.

The BOK also found that daily card spending fell by 7 percent on days of extreme heat, when the maximum temperature exceeded 35 C, compared with normal weather days, and decreased by 3 percent on cold-wave days, when the maximum temperature was at or below zero.

Daily card spending went down by 6 percent on days of heavy rainfall, when daily precipitation reached or exceeded 20 millimeters, the report showed.

The analysis was based on the data of card spending and weather conditions from the first quarter of 2023 through the second quarter of 2025 across 17 provinces.

"Unusual weather, changes in working hours and shifts in work patterns are likely to keep consumption patterns volatile," the BOK said in the report.

Meanwhile, South Korean stocks traded more than 1 percent higher late Monday morning on revived hopes for another rate cut by the Federal Reserve.

The benchmark Korea Composite Stock Price Index (KOSPI) had gained 40.09 points, or 1.18 percent, to 3,426.14 as of 11:20 a.m.

On Friday, U.S. stocks rebounded as U.S. consumer spending increased in August in line with the market expectations, sparking hopes for further monetary easing by the Fed.

In Seoul, major shares led the early gains.

Top-cap Samsung Electronics rose 1.68 percent, and chip giant SK hynix vaulted 3.05 percent.

Leading internet firm Naver jumped 7.99 percent, and major commercial bank Shinhan Financial Group advanced 2.17 percent.

K-pop powerhouse Hybe climbed 0.37 percent, and Samyang Foods, an instant noodle maker, added 0.61 percent.

—IANS

na/