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

SEOUL, Aug. 26 (Yonhap) -- South Korea's consumer confidence for August climbed to the highest level in more than 7 years on growing optimism about an economic recovery, the central bank said Wednesday.

According to the Bank of Korea (BOK), the consumer survey index (CSI) -- a gauge
of consumers' overall economic outlook, living conditions and future spending --
rose to 114 in August, compared with 109 the previous month.
The August figures marked the highest level since the third quarter of 2002 when
it came in at an identical 114, the BOK said. The CSI rose above the benchmark
100 for the fourth straight month in August.
A reading above 100 means optimists outnumber pessimists. The survey of 2,200
households in 56 major cities was taken from Aug. 12-19.
"Rising stock prices and growing signs of an economic improvement boosted
consumer sentiment," said Jeong Kui-yun, an official at the BOK.
A sub-index measuring current economic conditions reached 112 in August, up 16
from the previous month and the index calculating their economic outlook climbed
11 to 125. Consumers also expected overall interest rates to rise, mirroring an
economic recovery. An index measuring interest rate outlooks gained 10 points to
126, it added.
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 Aug. 11, the BOK froze the key interest rate at a record-low of 2 percent for
the sixth straight month. BOK Gov. Lee Seong-tae has cast a more upbeat view on
the economy, suggesting that the bank is mulling a possible rate hike.