Economic indicators are showing mixed signals, about the much-anticipated economic recovery. While some indexes point to a domestic economic recovery, others are discouraging. According to surveys by the Ministry of Finance and Economy (MOFE), the Bank of Korea and the National Statistical Office (NSO), the preceding composite index showed positive signs but cyclical coincident index still showed the economy in slump. The NSO's composite leading index rose for the fifth consecutive month in September. The index rose from 113 in April to 113.3 in May, 113.7 in June, 114.3 in July and 115 in September. However, the cyclical coincident indicator, which varies directly and simultaneously with the related economic trend thereby provide relatively accurate information about the current state of the economy, stood at 95.9 in September, the lowest since the 94.9 witnessed in November 1998. The cyclical coincident index has failed to emerge from the troughs of the economic cycle since a temporary rebound witnessed in February and March this year. "The absence of signs of recovery in the cyclical coincident indicator in the third quarter is proof that the domestic economic recovery is not firm," said a MOFE director. He said slower recovery of household income than household spending casts a shadow over Korea's full-fledged economic recovery. A recent NSO's tally showed that Korea's monthly real household spending increased by 4 percent to 2.15 million won in the third quarter this year from the corresponding period a year earlier, while the real household income shrank 0.2 percent to 2.49 million won from a year ago. Household income is stagnating while consumption is recovering at better-thanexpected rate. BOK's tally also showed that Korea's gross domestic income (GDI) grew only 0.2 percent in the third quarter, the slowest since the 0.2 percent recorded in the fourth quarter of 2000. A recovery in consumption that is not accompanied by an increase in income is unlikely to lead to a sturdy, elastic consumption recovery, warned Hyundai Securities. "Consumer sentiment has improved in general, but the foundation of earnings is still not solid enough to support the recovery in domestic consumer spending," said Lee Sang-jae, a manager of Hyundai Securities.