Confidence among South Korean consumers over economic outlook improved for five months in a row thanks to fiscal and monetary stimulus, central bank data showed Thursday. The composite consumer sentiment index (CCSI), which gauges consumers' assessment and outlook for economic conditions, rose one point from a month earlier to 106 in November, according to the Bank of Korea (BOK).
It marked the five straight months of increase after sliding to 99 in June when the outbreak of the Middle East Respiratory Syndrome (MERS) peaked.
Consumers refrained from spending at the time for fears of contagion. The last South Korean MERS patient died Wednesday, making the country officially free of the viral disease.
The BOK cut its benchmark interest rate in June to an all-time low of 1.5 percent to stimulate the soured private consumption, while the government unveiled a fiscal stimulus package, including a supplementary budget plan. Consumer spending continued to recover thanks to the fiscal and monetary stimulus, but uncertainties remained over interest rate hike in the United States that would lead to higher rate in South Korea with a certain time gap.
The index is based on a survey of 2,014 households conducted between Nov. 12 and 19. The reading above 100 means optimistic view outstripped pessimistic ones.
Sub-indices showed a mixed picture. Sentiment over current economic conditions declined 2 points from the prior month to 79 in November, with the figure for prospective economic conditions over the next six months sliding 2 points to 89. Prospects for household income gained 1 point from a month earlier to 102 in November, and the reading for consumer spending prospects rose 2 points to 110 last month.
Inflation expectations, which measure consumers' outlook for headline inflation over the next 12 months, made no change at 2.5 percent in November compared with the previous month.
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