South Korea's consumer sentiment is showing signs of steadily recovering after having contracted in the wake of the Sewol ferry disaster.
The Bank of Korea announced on Wednesday that this month's Composite Consumer Sentiment Index (CCSI) stood at 107, up two points from last month.
The index is produced by studying six key indices that gauge consumer confidence. A reading above 100 means optimists outnumber pessimists on economic conditions.
The index remained at 108 between February and April before slipping to 105 in May following the Sewol ferry sinking. In June, the index rose to 107 but fell back to 105 the following month, according to Korea's (KBS WORLD) website.
In detail, the consumer sentiment index for current living conditions jumped six points from last month to stand at 81 this month. The index is, however, still lower than the 91 posted in April before the Sewol ferry disaster was reflected in the figure.
The consumer sentiment index for living conditions six months down the road also rose eight points to 100 during the same period. That's close to the 101 posted in April. Such growth in the index is the largest to be posted since the figure rose nine points in May of last year.
An official of the central bank said consumers' expectations about economic recovery have increased with the government’s measures on boosting the economy. Those measures include the Finance Ministry's announced economic policies for the latter half of the year, tax code revisions and measures to revitalize service industries.
The official added expectations also increased as the Bank of Korea lowered the benchmark interest rate for the first time in 15 months in August to its lowest in 46 months.
The central bank came up with the latest indices on consumer sentiment after surveying 22-hundred households nationwide between August 13 and 20.
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