ID :
82994
Sun, 10/04/2009 - 19:37
Auther :
Shortlink :
https://www.oananews.org//node/82994
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High-income bracket boosts spending amid recovery hopes
SEOUL, Oct. 4 (Yonhap) -- The consumer sentiment of South Korea's high-income
earners improved as rising asset prices fueled by optimism over a prospective
economic recovery prompted them to loosen their purse strings, data by the
central bank showed Sunday.
The consumer survey index (CSI) for the consumption outlook by households earning
over 5 million won (US$4,257) per month came in at 117 in September, up from 114
the previous month, according to the Bank of Korea (BOK). The September figure
marked the highest level since July 2008, when the BOK began to compile related
data.
A reading above 100 means optimists outnumber pessimists. The CSI measures
consumers' overall economic outlook, living conditions and future spending.
The high-income bracket's CSI declined to 89 in December in the aftermath of the
global economic recession before starting to rebound in April as the Korean
economy showed signs it may be recovering at a faster-than-expected pace.
Analysts said improved consumer confidence by high-income households came as
rising stock and housing prices were boosting the value of their assets.
The South Korean economy, Asia's fourth-largest, grew 2.6 percent in the second
quarter from three months earlier, the sharpest growth in more than five years.
The country's key stock index has jumped 46.3 percent so far this year, mainly
because foreign investors snapped up Seoul stocks on recovery hopes.
The CSI measuring the high-income group's outlook on housing prices reached 119
in September, up from 116 in August and hitting a record high, the BOK added. An
index measuring their stock price prospects reached 120 last month, compared with
94 a year earlier.
The rise in confidence prompted the high-income bracket to expand consumption.
Sales at three large local department stores rose 7.6 percent in August from the
previous year as shoppers snapped up luxury and miscellaneous goods, according to
a government report.
Meanwhile, the consumer confidence of low-income families remained sluggish,
showing the nascent economic recovery has yet to become sustainable.
The CSI for the consumption outlook of households earning less than 1 million won
monthly came in at 103 in September, down from 107 in August, the BOK said.
Sales at South Korea's major discount outlets fell 1.5 percent on-year in August,
marking the third straight month of falls.
sooyeon@yna.co.kr
(END)
earners improved as rising asset prices fueled by optimism over a prospective
economic recovery prompted them to loosen their purse strings, data by the
central bank showed Sunday.
The consumer survey index (CSI) for the consumption outlook by households earning
over 5 million won (US$4,257) per month came in at 117 in September, up from 114
the previous month, according to the Bank of Korea (BOK). The September figure
marked the highest level since July 2008, when the BOK began to compile related
data.
A reading above 100 means optimists outnumber pessimists. The CSI measures
consumers' overall economic outlook, living conditions and future spending.
The high-income bracket's CSI declined to 89 in December in the aftermath of the
global economic recession before starting to rebound in April as the Korean
economy showed signs it may be recovering at a faster-than-expected pace.
Analysts said improved consumer confidence by high-income households came as
rising stock and housing prices were boosting the value of their assets.
The South Korean economy, Asia's fourth-largest, grew 2.6 percent in the second
quarter from three months earlier, the sharpest growth in more than five years.
The country's key stock index has jumped 46.3 percent so far this year, mainly
because foreign investors snapped up Seoul stocks on recovery hopes.
The CSI measuring the high-income group's outlook on housing prices reached 119
in September, up from 116 in August and hitting a record high, the BOK added. An
index measuring their stock price prospects reached 120 last month, compared with
94 a year earlier.
The rise in confidence prompted the high-income bracket to expand consumption.
Sales at three large local department stores rose 7.6 percent in August from the
previous year as shoppers snapped up luxury and miscellaneous goods, according to
a government report.
Meanwhile, the consumer confidence of low-income families remained sluggish,
showing the nascent economic recovery has yet to become sustainable.
The CSI for the consumption outlook of households earning less than 1 million won
monthly came in at 103 in September, down from 107 in August, the BOK said.
Sales at South Korea's major discount outlets fell 1.5 percent on-year in August,
marking the third straight month of falls.
sooyeon@yna.co.kr
(END)
