S. Korea's consumer sentiment hits 8-month low in March

SEOUL, March 25 (Yonhap) -- South Korea's consumer confidence fell to an
eight-month low in March as concerns about job markets overshadowed optimism
about an economic recovery, the central bank said Thursday.

The consumer sentiment index (CSI) -- a gauge of consumers' overall economic
outlook, living conditions and future spending -- reached 110 in March, slightly
down from 111 in February, according to the Bank of Korea (BOK).
The March reading marks the lowest level since 109 recorded in July, but the
index stayed above the benchmark 100 for the 11th straight month, the BOK added.
The sentiment index hit a seven-year high of 117 in October last year.
A reading above 100 means optimists outnumber pessimists. The survey of 2,200
households in 56 major cities was taken from March 11-18. The measure is widely
used to gauge the future direction of private spending.
"Consumers' overall view about the economy remained positive, but the
still-sluggish job market weighed on their sentiment," said Jang Wan-sub, an
official at the BOK.
A sub-index measuring current economic conditions reached 100 this month, up from
99 in February, and an index gauging the economic outlook added three points to
113, it added.
A set of economic data are sending mixed signals about the pace of the economic
recovery. Euro-zone debt fears and still-chilly job markets prompted policymakers
to strike a cautious note for the recovery.
The BOK froze the key interest rate at a record low of 2 percent for the 13th
straight month on March 11. It cut the rate by a combined 3.25 percentage points
between October 2008 and February 2009 in a bid to help boost the sagging
economy.
sooyeon@yna.co.kr
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