Seoul: South Korea's consumer sentiment rose to its highest level in more than seven years in August, driven by solid exports and optimism over the government's supplementary budget, the central bank said Tuesday. The composite consumer sentiment index (CCSI) stood at 111.4 this month, up 0.6 point from July.
According to Yonhap News Agency, the reading marks the fifth consecutive month of increase and the highest level since January 2018, when the index reached 111.6. The index had plunged below 90 in December following former President Yoon Suk Yeol's imposition of martial law, then remained in the 90-point range before climbing to over 100 in May. A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 means the opposite.
August's increase was attributed to a recent improvement in private spending, driven by the Lee Jae Myung government's stimulus measures aimed at revitalizing growth momentum and boosting private consumption, as well as by robust exports. Exports, a key growth engine, expanded by 7.6 percent on-year in the first 20 days of August, led by strong demand for semiconductors and automobiles. In July, exports rose 5.9 percent from a year earlier.
Retail sales, a gauge of private spending, gained 0.5 percent on-month in July, backed by strong demand for clothing and cosmetics, government data showed.