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Korea's consumer sentiment slightly improves in July Updated: 2016-07-27 18:20:15 KST

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2016-07-27

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Korea's consumer sentiment has improved slightly‚ touching the highest point in three months. The Bank of Korea says the consumer sentiment index this month came in at 101‚ up two points from June. A reading above one-hundred means optimism outweighs pessimism. The monthly index reflects consumers' outlook on the economy‚ their living conditions‚ and future spending plans. The uptick in July is seen as reflecting easing concerns about the possible fallout from Brexit. The reading came in below 100 for two months due to the government's ongoing corporate restructuring drive‚ which triggered fears of massive layoffs in the country's shipping and shipbuilding industries. Despite this mild improvement in sentiment‚ Bank of Korea Governor Lee Ju-yeol says recovery in the domestic economy remains feeble‚ with exports still slow and structural issues such as an aging population and rising household debt very much present. Speaking at a conference held at the National Assembly‚ the country's top central banker said Korea has enough fiscal strength to cope with the slowing economy and weak job market. His comments are likely a message directed at the National Assembly to push for the swift passage of a supplementary budget bill worth roughly 9.7 billion U.S. dollars drawn up to bolster job creation and cushion the impact of corporate restructuring. Lee added that the country's monetary and fiscal policies need to be coupled with structural reforms to address the problems of low growth and a decline in growth potential. Kim Min-ji‚ Arirang News. Reporter : kimmj@arirang.com

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