Seoul: South Korea's consumer sentiment has climbed to a new four-year high in July, fueled by positive expectations surrounding the government's supplementary budget and initiatives to bolster the economy, as reported by the central bank on Wednesday.

According to Yonhap News Agency, the composite consumer sentiment index (CCSI) reached 110.8 this month, marking an increase of 2.1 points from June, based on a survey by the Bank of Korea (BOK). This level is the highest since June 2021, when the index was at 111.1, and it represents the fourth consecutive monthly rise. Last month, the index stood at 108.7, previously setting a four-year high.

Consumer sentiment had dipped below the 90-point mark in December following former President Yoon Suk Yeol's enforcement of martial law. It remained in the 90-point range until it surpassed 100 in May. A reading above 100 signifies that optimists outnumber pessimists, whereas a figure below 100 indicates the opposite.

The enhancement in consumer sentiment is credited to measures taken by the Lee Jae Myung government to rejuvenate growth momentum and enhance private consumption. Earlier this month, the National Assembly and the Cabinet sanctioned a 31.8 trillion-won (US$22.94 billion) supplementary budget in response to declining domestic demand and external economic challenges.