South Korean Consumer Confidence Rises to 11-Month High

South Korean consumer confidence rose to the highest level in almost a year as improving signs for the U.S. economy and European debt crisis offset worries over North Korea.

The sentiment index was at 104 in April, the strongest since May 2011, rising from 101 in March, the Bank of Korea said in an e-mailed statement today. A reading above 100 indicates optimists outnumber pessimists.

The expected inflation rate over the next year was 3.8 percent in April, below last month’s 3.9 percent, today’s report showed.

The consumer confidence index is based on survey responses from 2,052 households in 56 cities. It was conducted by mail and telephone between April 12 and 18.

South Korea’s won rebounded from a three-month low and stocks rallied right after a long-range rocket launched by North Korea failed on April 13.

To contact the reporter on this story: Eunkyung Seo in Seoul at eseo3@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net

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