South Korea’s Consumer Confidence Climbs to Seven-Year High
South Korea’s consumer confidence rose to the highest level in more than seven years in October as the nation’s economic recovery strengthened.
The sentiment index climbed to 117 from 114 in September, the Bank of Korea said in Seoul today. The figure matched that of the first quarter of 2002, when the bank published its confidence survey on a quarterly basis. An index figure of more than 100 indicates optimists exceed pessimists.
Gross domestic product expanded 2.9 percent in the third quarter from three months earlier, the fastest pace in seven years. The government frontloaded budget spending to cushion the economy from the global recession and the central bank cut the benchmark interest rate by 3.25 percentage points between last October and February, the most aggressive easing in a decade.
The benchmark Kospi stock index has risen more than 47 percent this year.
Combined sales at South Korea’s major department stores rose in September for a seventh straight month and exports fell at the slowest pace in 11 months.
South Korean Finance Minister Yoon Jeung Hyun said yesterday the GDP figures were a “surprise” and the nation may post full-year growth for 2009. The government previously forecast the economy to contract 1.5 percent this year.
The consumer confidence index was based on a survey of 2,200 households in 56 major cities, conducted by mail and telephone between Oct. 14 and 21.
Filed under: finance by Finance Boss