Consumer sentiment in the country improved at the fastest pace in over four years in May ahead of the presidential election, recovering to levels seen before the December 3 martial law decree. 

According to the Bank of Korea on Tuesday, the Composite Consumer Sentiment Index stood at 101-point-eight in May, up eight points from the previous month.
 
It was the largest monthly gain since October 2020, when the figure jumped 12-point-three points.

The index surpassed the benchmark 100 for the first time since November last year.

A reading above 100 indicates that optimists outnumber pessimists. 

The central bank attributed the surge to the passage of a supplementary budget, a delay in the implementation of reciprocal tariffs by the U.S., and expectations for a new government. 

The bank said, however, that the uptick reflects a base effect and that more time is needed to see if the trend continues. 

The subindex that measures consumers’ assessment of current economic conditions rose eleven points from a month earlier to 63. 

The subindex that measures consumers’ economic outlook jumped 18 points from a month earlier to 91, posting the largest gain since May 2017.