Household income, spending grow in Q1 amid rebounding economy

SEOUL, May 14 (Yonhap) -- Household income and expenditures in South Korea
increased during the first quarter of this year amid improving economic
conditions, a government report showed Friday.
According to the report by Statistics Korea, household income amounted to a
monthly average of 3.73 million won (US$3,286) during the January-March period,
up 7.3 percent from the same period a year earlier. Adjusted for inflation, the
amount also rose 4.4 percent.
The increase comes amid a faster-than-expected economic rebound from the global
downturn that started in the wake of financial turmoil in late 2008.
During the first quarter, labor income rose 4.9 percent from a year earlier,
while earnings from business activities grew 12.4 percent, the report said.
The report also showed that household spending jumped during the first quarter,
with consumption rising 9.5 percent over the cited period to a monthly average of
2.34 million won.
Spending on clothes and shoes jumped 8.5 percent to 136,000 won per month while
expenditure on food and non-alcoholic beverages grew 4.5 percent to 299,000 won,
the report said.
Households saw their monthly spending on housing, tap water and heating bills
increase 13.9 percent to 285,000 won. Spending on transportation jumped 17
percent due to a hike in oil prices, according to the report.
"The figures showed that income increased significantly but consumption expanded
more than income growth," a statistics agency official said. "Households appeared
to have spent more than their income increased on expectations economic
conditions will get better down the road."
kokobj@yna.co.kr
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