South Korea Consumer Sentiment Strengthens In June

(RTTNews) - South Korea's consumer confidence strengthened to a four-year high in June on improving domestic economic conditions, survey data from the Bank of Korea showed on Tuesday.

The consumer sentiment index advanced to 108.7 in June from 101.8 in the previous month. This was the highest score in four years.

The sub-index measuring future domestic economic situation surged 16 points to 107 in June. Assessment about the current economic situation gained 11 points to 74.

Consumers' view about their current living standards rose two points in June, and reached 92, and that concerning the future outlook moved up four points to 101.

Sentiment related to future household income climbed three points to 102 in June and that concerning future household spending gained two points to 110.

The expected inflation rate for the coming year was 2.4 percent in June compared to 2.6 percent projected in May. The survey was conducted among 2,500 households between June 10 and 17.

ING economist Min Joo Kang said the improvement in consumer confidence was supported by the return of policy normalcy, gains in asset markets, and fresh fiscal stimulus. The economist said the survey suggested that the economy has bottomed out in the first quarter. The Bank of Korea is set to delay cutting interest rates until the fourth quarter due to rising housing prices and household debt, she added.