SEOUL, KOREA- South Korea's consumer confidence rose for two straight months in March due to a rally in local stocks and steady improvement in exports, the central bank said Tuesday.
The consumer sentiment index (CSI), which gauges consumers' overall economic outlook, stood at 101 in March, up 1 point from a month earlier, according to the Bank of Korea (BOK). The CSI is based on survey response from 2,084 households in 56 cities conducted between March 13 and 20. The reading above 100 means optimists outnumbered pessimists.
The March rise was mainly attributed to a continued upward trend of local stocks and steady enhancement of exports, which account for more than half of the Asia's No. 4 economy. "The upward trend in the local stock market and steady growth of exports were reflected in consumer confidence. But, it remains to be seen whether the sentiment among consumers would continue to improve due to lingering external uncertainties such as Europe's fiscal crisis," said an official at the BOK.
South Korean consumers' expectation for inflation fell slightly, but stayed at a high level. Inflation expectation over the next 12 months came in at an annual rate of 3.9 percent in March, down 0.1 percentage point from the previous month.
Sub-indices showed a mixed picture. Consumer sentiment on living standards fell 2 points on-month to 84 in March, but with that on prospective living conditions stayed at the same level of 94.
In March, consumer sentiment on current economic conditions climbed 2 points on-month to 70, with that on future economic conditions advancing 2 points to 82. Consumer sentiment on prospective income rose 1 point to 9, but that on prospective spending was unchanged at 108.
