Consumer sentiment reaches 8-month high

South Korea’s overall consumer sentiment reached an eight-month high in August on the back of growing expectations of an economic recovery.

The Bank of Korea said Friday that the composite consumer sentiment index reached 102 last month, up from 101 in July.

This marked that highest since December last year, and a second consecutive increase, the central bank data showed. A reading above 100 indicates that more households are positive about their economic future.

Analysts say that Korea’s sovereign credit rating upgrade by S&P had a positive effect on the consumer sentiment. S&P Global Ratings raised Korea’s long-term credit rating to “AA” from “AA minus” early this month.

However, in a separate index measuring consumer sentiment toward employment improved reaching 83 last month from 76 in July as the country’s hiring season approaches in the fall.

Consumer confidence tracks sentiment among households that are randomly selected through a survey.

By Park Hyong-ki (hkp@heraldcorp.com)