S. Korean consumer sentiment hits 7-year high in July

SEOUL, July 27 (Yonhap) -- South Korea's consumer confidence rose to a seven-year
high in July as a set of economic data boosted the prospects of an economic
recovery, the central bank said Monday.
According to the Bank of Korea (BOK), the consumer survey index (CSI) -- which
gauges consumers' overall sense of their economic outlook, living conditions and
future spending -- climbed to 109 in July, compared with 106 the previous month.
The July figures marked the highest level since the third quarter of 2002 when it
came in at 114, the BOK said. The CSI rose above the benchmark 100 for the third
straight month last month.
A reading above 100 means optimists outnumber pessimists. The survey of 2,200
households in 56 major cities was taken from July 13-20.
"Consumer confidence has continued to be on an upward trend as a set of economic
indicators are improving," said Jeong Kui-yun, an official at the BOK. "It seemed
that rising asset prices also prompted consumers to have hopes for an economic
recovery."
The upbeat data came as the South Korean economy grew 2.3 percent in the second
quarter from three months earlier, the fastest growth in more than five years, as
fiscal spending helped bolster consumer spending and exports improved.
Asia's fourth-largest economy averted a technical recession in the first quarter
by growing 0.1 percent on-quarter after tumbling 5.1 percent in the final quarter
of 2008.
On July 9, the BOK froze the key interest rate at a record low of 2 percent for
the fifth straight month, saying that the local economy has emerged from a
downturn amid easing inflationary pressure.
The central bank made six consecutive rate cuts totaling 3.25 percentage points
between October and February in a bid to bolster the sagging economy.
sooyeon@yna.co.kr
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