Consumer sentiment appears to be on the rise as sales at department stores in February jumped at the fastest pace in 25 years.
According to Statistics Korea on Monday, department store sales in February surged 33-point-five percent from a year earlier, the biggest jump since February 1996, when a 52-point-nine percent increase was posted.
Analysts assess the strong performance reflects gift buying ahead of the Lunar New Year holiday in mid-February amid increased outdoor activity due to warmer weather.
The retail sales index, which shows consumer trends, stood at 115-point-two in February, after dropping to 105-point-seven a year earlier. The index posted 116-point-two just before the start of the COVID-19 pandemic in December 2019.
The pace of recovery, however, differed among items, with the index standing at 141-point-five for durable goods like automobiles and home appliances, reflecting consumption tax cuts and the prolonged pandemic forcing people to stay indoors.
The index for semi-durables, such as clothes, shoes and bags, however, stayed under 100 at 98.