Confidence among South Korean consumers over economic situations rose to the highest in eight months after the country's sovereign credit rating was upgraded by a U.S.-based credit rating appraiser, central bank data showed on Friday.
Composite consumer sentiment index (CCSI) stood at 102 for August, up 1 point from the previous month, according to the Bank of Korea (BOK). The reading above 100 means optimists outnumbered pessimists. It marked the highest since December last year, rising for two straight months as Standard & Poor's revised up South Korea's sovereign rating by one notch on Aug. 8 to AA. It was the highest the country ever received from the rating agency.
Local shares gained ground, and the government unveiled a supplementary budget plan for the second half of this year, helping boost outlook among consumers for economic conditions.
Sub-indices showed a rosy picture. The index on current economic conditions gained 3 points in August from a month earlier, with the reading for prospective economic situations advancing 5 points. Readings for prospective household income and expenditure was unchanged at 100 and 106 each compared with the previous month.
Inflation expectations, which measure consumers' outlook for headline inflation in the next 12 months, made no change at 2.4 percent for the fourth consecutive month.
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