Household Economy Expected to Be Better with Increased Income

More consumers anticipate that economy will be recovered that their family economy would be better and income would increase.

According to the `research on the consumers` trend in the first quarter, ` which Bank of Korea announced on the 31st after it researched 2509 families in 16 cities across the country, consumer survey index (CSI), which measures consumer sentiment for economic prospects over the next six months, turned out to be 105. The index above 100 means that optimistic respondents are more than pessimistic ones.

The index measuring household income over the next 12 months also rose to 108 from 99 in the previous quarter. The index measuring current economic condition rose to 113 from the previous quarter`s 81, and the index of consumers` prospects over next 6 months soared to 123 from 94 in the previous quarter.

The index for future spending outlays, the index of living standard prospects, and the index of household income prospects went beyond the standard for the first time since the first and second quarters in 2000.

However, the index of current living standards marked 96, which inched upward from 88 in the fourth quarter in 2001, but is still below the standard.

The index for employment situation rose to 109 from 79 in the previous quarter, which means employment would be easier, and the index for price level fell to 64 from 74 in the previous quarter, which means the prices would increase.

Sang-Chul Kim sckim007@donga.com