S.Korea's consumer confidence rises to 3-month high

Confidence among South Korean consumers over economic conditions rose to the highest in three months as concerns eased about the Brexit, or British referendum to leave the European Union (EU), central bank data showed on Wednesday.

Composite consumer sentiment index (CCSI) stood at 101 in July, up 2 points from a month earlier, according to the Bank of Korea (BOK). It marked the highest since April.

The reading above 100 means optimists outnumbered pessimists. The July figure was based on a BOK survey of 2,070 households conducted between July 13 and 20.

Consumer confidence weakened from April as the government launched a restructuring for troubled shipbuilders and shipping lines. The unexpected decision in Britain to abandon its EU membership rattled the global financial market, raising concerns among South Korean consumers over the economy.

Those concerns began to be relieved from this month as the BOK cut its benchmark interest rate to an all-time low of 1.25 percent in June and the government announced a supplementary budget plan for the second half.

Sub-indices showed a positive picture. The index for prospective living conditions rose 2 points over the past month to 98 in July, and the figure for prospective household income gaining 2 points to 100.

The index for current economic situations climbed 3 points to 71, with the outlook for economic conditions adding 2 points to 80 in July.

Expectations for headline inflation in the next 12 months came in at 2.4 percent in July, unchanged for three months in a row. Endit