Consumer sentiment in South Korea rose slightly in July after plummeting to a two-year low on concerns over the Middle East Respiratory Syndrome (MERS) outbreak last month, central bank data showed Friday.
  

The overall consumer sentiment index reached 100 in July, inching up from 99 in the previous month, according to the Bank of Korea. A reading below 100 indicates that pessimists outnumber optimists.
  

In June, the index fell below the benchmark level for the first time in more than two years, reflecting widespread concern over the respiratory disease.
  

The outbreak, the second-largest infection outside of Saudi Arabia, has claimed 36 lives so far and dragged down growth estimates by hurting private spending and scaring foreign tourists, who had been a major driving force in domestic demand.
  

The rebound in consumer sentiment comes as the country is slowly making its recovery from the deadly disease, with no additional infections occurring over the past 18 days.
  

Nonetheless, the impact of the respiratory illness is expected to linger, clouding growth prospects for Asia's fourth-largest economy that is already struggling from slumping exports.
  

On Wednesday, BOK Gov. Lee Ju-yeol said that a decline in incoming tourists was one of the biggest factors that have cut second-quarter growth, adding the trend is unlikely to recover in the summer peak season. He said this may lower annual gross domestic product growth by 0.1 percentage point.
  

Earlier this month, the central bank cut its annual growth estimate to 2.8 percent from 3.1 percent, citing the impact of the MERS outbreak as well as the ongoing drought.
  

The CSI survey of 2,200 households across the country was conducted between July 10 and 17. (Yonhap)