BOK predicts increase in household spending

The number of Koreans willing to increase spending on education and travel is increasing, the Bank of Korea (BOK) said Monday.

According to a recent BOK poll of 2,417 households in 16 cities, the consumer survey index (CSI) on consumption increased sharply to 107 in the first quarter of this year from 96 the previous quarter. A figure over 100 indicates that an optimistic mood prevails among consumers.

The index on spending on education stood at 118 and that on travel 116. On the other hand, the index on clothing came to 97, that on restaurant expenditures to 84, and that on hobbies and cultural activities to 90. Although the figures were below 100, they showed remarkable growth compared with those in the previous quarter, officials said. The portion of households planning to buy real estate over the next six months also rose to five percent from three percent in the previous quarter.

The index measuring current living conditions as compared to those six months previously rose slightly to 72 from 66. The index on the outlook for household income for the coming year rose to 89 from 84.

Hong Chan-Sun hcs@donga.com