Less consumer spending and a rise in income caused South Korea's deficit household ratio to fall to a record low level in 2014, government data showed Friday, a sign that some economy watchers say is worrisome.
  

Analysis of household income and spending by Statistics Korea showed that 22 percent of families with two members or more were running a deficit last year, a 0.5 percentage point dip from the year before.
  

This is the lowest number on record since corresponding data was collected starting in 2003.
  

A deficit household refers to a home that spends more than its disposable income. Such households have to rely on borrowing to make ends meet, which can lead to considerable social and financial risks down the line.
  

A drop in the number of such households would generally be viewed as positive, but watchers say if this is due to less spending, it would adversely affect economic growth. It also means a deterioration of living standards broadly reflects the aging of the country's population. An older population generally spends less and saves more than younger people.
  

Last year, South Korea's household disposable income rose 3.5 percent, exceeding the 2.8 percent growth in spending.
  

"In effect, people spent less even though they made more money, which can be a sign that they have little confidence in the economy and want to save up to deal with uncertainties," a researcher at a local think tank said.
  

In particular, among the lowest 20 percent of income earners, the ratio of deficit households stood at 46.5 percent. This is still way above the average but represents a sharp 5.2 percentage point improvement from the year before.
  

Figures showed disposable income for such households rose 7.4 percent last year but spending was down 0.1 percent.
  

The deficit rate for the second-lowest income-earning households reached 26.1 percent for a 0.6 percentage point improvement. This too is the lowest deficit ratio for the income bracket.
  

For families in the second-highest income level, the deficit ratio edged down 0.5 percentage point to 12.6 percent, the lowest reached since 12.5 percent in 2005.
  

On the other hand, the ratio of deficit households for middle income families moved up 2.6 percentage points to 17.1 percent. For the top 20 percent income group, the ratio rose 1.1 percentage points to 7.6 percent. (Yonhap)