Consumer sentiment rebounds in October on eased geopolitical risks

South Korea's consumer confidence rebounded in October as tensions subsided between North Korea and the United States, a central bank poll showed Friday.

The composite consumer sentiment index for October stood at 109.2, up 1.5 points from the previous month, according to the survey by the Bank of Korea.

In August, the index fell 1.3 points from July. A reading above 100 means optimists outnumber pessimists. Consumer sentiment was also weak in September.

The BOK attributed the rebound to eased tensions between North Korea and the US and improved people's sentiment about the economy in general.

Tensions have spiked on the Korean Peninsula following North Korea's sixth and most powerful nuclear test and a series of ballistic missile tests. A war of words between the leaders of North Korea and the US has stoked fears of a possible military conflict.

Still, tensions have recently subsided as North Korea did not carry out any provocation since Sept. 15 when it launched a Hwasong-12 intermediate-range ballistic missile that flew over Japan into the North Pacific Ocean.

The BOK also said its index measuring the people's sentiment toward the current economic conditions came to 91 in October, up from 87 the previous month.

In addition, an index measuring the public's feelings toward economic conditions in the next six months rose to 99 from 96 over the cited period.

The latest monthly index is based on a survey of 2,020 households throughout the country from Oct. 13-20. (Yonhap)