S. Korean consumer sentiment flat at 7-year high in Sept.

By Kim Soo-yeon
SEOUL, Sept. 25 (Yonhap) -- South Korea's consumer confidence for September
remained flat from the previous month, but was still at the highest level in over
seven years on economic recovery hopes, the central bank said Friday.
According to the Bank of Korea (BOK), the consumer survey index (CSI) -- a gauge
of consumers' overall economic outlook, living conditions and future spending --
came in at 114 in September, unchanged from a month earlier.
The September figure marked the highest level since the third quarter of 2002
when it reached an identical 114, the BOK said. The CSI came in above the
benchmark 100 for the fifth straight month in September.
A reading above 100 means optimists outnumber pessimists. The survey of 2,200
households in 56 major cities was taken from Sept. 11-18.
"Although the index remained unchanged, the reading still stayed above par,
pointing to consumers' optimism for economic situations," a BOK official said.
A sub-index measuring inflation outlooks reached 138 in September, up 4 from the
previous month, it added. Consumers also expected overall interest rates to rise,
mirroring an economic recovery. An index measuring interest rate outlooks gained
6 points to 132.
The data came as the South Korean economy grew 2.6 percent in the second quarter
from three months earlier on the back of massive fiscal spending.
On Sept. 10, BOK Gov. Lee Seong-tae hinted that the bank could raise its key
interest rate if housing prices continue their upward trend.
The BOK cut the policy rate by a total of 3.25 percentage points between October
and February in an attempt to put the brakes on a sharp economic free-fall.
sooyeon@yna.co.kr
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