S. Korea's consumption propensity falls to record low on slowing income

South Korean consumers' propensity to spend money declined to a record low in the third quarter due to slowing income growth, a government report showed Friday.

Households' monthly income averaged 4,416,000 won (3,825 U.S. dollars) during the July-September period, up 0.7 percent from the same period of last year, according to Statistics Korea.

It marked the lowest growth since the third quarter of 2009 when the global financial crisis stifled the economy.

Dampened by the slowing income, household expenditure reduced 0.5 percent from a year earlier to 3,397,000 won in the third quarter, marking the first decline in two and a half years.

The propensity to consume, which gauges the ratio of consumption to income among households, stood at 71.5 percent in the third quarter, marking the lowest since the agency began compiling the data in 2003.

Consumers reduced spending on worries about economic slowdown while preparing for after-retirement life amid the fast-aging population.

People in South Korea mainly spent money on daily necessities such as food and residence costs.

Residence costs surged 23.5 percent during the quarter on the back of higher home rental. Food costs increased 2.7 percent on higher vegetable and meat prices.

Costs for cigarette and liquors soared 23 percent as the government raised cigarette prices by about 80 percent. Endit