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Consumer Sentiment rose up by 1.8 points in early January to 61.9%, compared with market expectations for a slight decline to 59.0%. Despite this surprising gain, sentiment is still 8.4 points below its September level and 21.0% below its year ago level. The current level remains well below its recessionary average of the past 50 years. Current Conditions slipped by 0.3 points to 69.2%. This is 5.8 percentage points below its September level and 26.7% below its year ago level. Consumer Expectations jumped by 3.2 points to 57.2%. Nevertheless, they are still 10.0 percentage points below their September level and 16.0% below their year ago level. Bottom Line: Consumer sentiment climbed in early January. However, sentiment had collapsed in October in reaction to the intensification of the financial and credit market turmoil. Overall assessments of the economy, as well as assessment of current conditions and consumer expectations, are still significantly below their September level and well below their year ago levels. Thus, despite this month's increase, household assessments of the economy are still mired at recessionary levels. The causes of consumers' pessimism are also dampening real consumer spending.

A South Korean court acquitted a blogger on Monday of spreading false information, in a case that triggered debate about freedom of speech in cyberspace and critics said was only launched because his economic doom postings angered authorities. Defendant Park Dae-sung, who went by the pseudonym "Minerva" after the Greek goddess of wisdom became a household name last year for his predictions of sharp falls in the won and the local stock market and the collapse of U.S. investment bank Lehman Brothers. "He's been found not guilty," a court official said by telephone. The court threw out charges that he purposely harmed market sentiment by posting false information on his blog. Prosecutors said a posting Park made in December led to volatility in the local currency and caused financial authorities to inject billions of dollars to stabilize the Korean won. "Even if there was recognition that it was false information, he cannot be seen as having acted on purpose to harm public interest considering the situation at the time including the special nature of the foreign exchange market," the court said. As the markets tumbled last year, the main financial regulator warned it would crack down on what it considered malicious rumors. Some economic analysts said they had come under pressure from authorities not to voice negative views on the economy.