Bank of Korea says consumer sentiment rises in September on improved economic outlook

The Bank of Korea said Wednesday its September consumer sentiment index rose 2.1 points from the previous month to 106.6.

The central bank attributed the improvement primarily to a sharper assessment of current business conditions, which jumped 4 points to 83. Households also expressed greater confidence regarding future income and job opportunities, with those respective indices rising 2 points each to 102 and 88. Expectations for consumer spending over the next six months edged up 1 point to 110, while views on current living conditions held steady at 92.

"Consumers' subjective expectations about the economic situation were more optimistic than the past average," the Bank of Korea said in its report, noting that any reading above 100 indicates optimism relative to the long-term mean since 2003.

Beyond the headline figures, perceptions of household finances showed mixed signals. The index for current household savings rose 1 point to 95, and the measure for current debt levels also increased by 1 point to 101. However, outlooks for both future savings and future debt remained unchanged from August at 100 and 97, respectively.

Inflation expectations remained anchored. Consumers expect prices to rise 2.7 percent over the coming year, unchanged from August, while longer-term forecasts for three and five years ahead both held at 2.6 percent. When asked which items would most influence price increases in the year ahead, 52.7 percent cited petroleum products, followed by 39.9 percent pointing to agricultural and livestock goods and 29.8 percent naming public utility charges.

Views on housing prices showed no change, with the relevant index staying at 125. Similarly, expectations for wage levels ticked up slightly by 1 point to 124, while the outlook for interest rates climbed 3 points to 128.