South Korea consumer sentiment data hits 16-month high

South Korea's consumer sentiment index hit its highest level in 16 months in January, a government survey showed on Tuesday, marking the latest sign a long-awaited recovery in domestic consumption may be emerging.
Although a slim majority of consumers in the survey remained negative about the economic outlook, analysts said the trend was positive after four consecutive months of improvement in sentiment despite continuing risks.
Data on domestic consumption has been closely watched as depressed private spending has continued to hold back the economy, the world's 12th largest, which has had to rely on strong growth in exports, led by shipments to China.
"We expect continuous but mild recovery in domestic consumption and export momentum is not likely to dwindle for the time being as the global economy appears to be accelerating," said Lim Ji-won, an economist at J.P. Morgan in Seoul.
The Consumer Expectation Index, a major gauge of how consumers feel about the prospects for the economy and how they plan future spending, rose to 98 in January from 96 in December, the National Statistical Office (NSO) said in a statement.
A reading below 100 means consumers expecting the economy and living standards to get worse in the next six months outnumber those expecting an improvement.
Data released at the end of last month showed South Korea's economy was only in the early stages of a hesitant recovery driven mostly by exports, which soared 33.2 percent in January.
Wholesale and retail sales in December declined 1.5 percent as a crackdown on household debt and credit card spending hit domestic spending.
NEW FINANCE MINISTER: South Korean President Roh Moo-hyun appointed on Tuesday former minister Lee Hun-jai his new finance minister to help to steer the country's economic recovery, the presidential Blue House said.
The widely-expected appointment of Lee, 59, was made as exports are driving the recovery of South Korea's economy, the fourth largest in Asia, while domestic consumption has yet to show convincing signs of a pick-up.