S. Korea's leading index jumps by most in nearly 40 yrs

SEOUL, Aug. 2 (Yonhap) -- South Korea's main composite index made the largest
on-month jump in nearly 40 years in June on growing predictions the economy will
make a sharp rebound, the government said Sunday.
The Ministry of Strategy and Finance said the Leading Composite Index (LCI) grew
a unprecedented 2.8 percent compared with May to reach 120.8 in the cited month.
The gain is the highest gain tallied since the index was compiled in January
1970.
Of the 10 indicators that make up the future-oriented index, have all posted
positive monthly gains since April, according to the ministry.
Indices monitoring machinery orders and consumer sentiment posted double-digit
gains, while those for construction orders and inventory cycle moved up in the
seven-percent range.
The LCI is a key indicator used to gauge possible growth in the next 6-7 months.
The Coincident Composite Index (CCI) also moved up 2.0 percent, the highest gain
since a 2.1 percent surge seen in the first month of 1978, the ministry said.
A ministry official said that all eight indicators that make up the CCI, such as
import volume and actual construction work carried out, all moved into positive
territory for the first time since Dec. 2007.
"Across-the-board gains by the two major indices that encompass production, trade
and employment may be a sign that the economy will make a faster-than-expected
comeback," the official said.
There has been growing predictions that South Korea may experience a V-shaped
rebound instead of the slower U-shaped recovery anticipated by most
industrialized economies.
Others at the ministry said that while overall circumstances were looking up
there are still lingering uncertainties that could affect the economy.
yonngong@yna.co.kr
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