The Korea Herald

지나쌤

Monthly household spending inches up 1 pct in Q2

By KH디지털2

Published : Aug. 21, 2015 - 13:18

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South Korea's monthly household spending edged up in the second quarter from a year ago, weighed down by the outbreak of Middle East Respiratory Syndrome, a government report showed Friday.
  

The average household spent just over 3.28 million won ($2,750) per month in the April-June period, up 1 percent from the same period a year earlier, according to the report by Statistics Korea.
  

The average consumption propensity, or the ratio of total consumption spending to disposable income, stood at 71.6 percent, down 1.7 percentage points from the year before and the lowest reading for the second quarter since the government started compiling related data in 2003.
  

"This is the lowest number since the record low number reported for the fourth quarter of last year," an official said.
  

He said a rise in rent and cigarette prices pushed up spending, while the MERS scare affected outlays in recreational and transportation areas.
  

The respiratory illness that was first confirmed on May 20 claimed 36 lives with 186 people catching the disease.
  

According to the report, the average household brought home some 4.27 million won per month in the second quarter, a gain of 2.9 percent on-year. Of these, earned income rose 1.7 percent, while wealth transfer shot up 15.2 percent.
  

Household disposable income rose 3.1 percent on-year to 3.48 million won, with the earnings surplus growing 9.6 percent, the report showed.
  

The finance ministry said that the MERS shock contributed to household spending falling behind income gains in the second quarter.
  

It, however, said that a steady rise in income among the lowest and highest income earnings is a good sign.
  

The ministry said with the government committed to spending the 11.53 trillion won extra budget as soon as possible, it hopes to spur overall economic growth that can boost spending as well as income. (Yonhap)