Consumer confidence stagnates

Consumer confidence remained low last month due to worries about rising commodity prices, according to a National Central University survey released yesterday.

Chu Yun-peng (朱雲鵬), head of the university's Research Center for Taiwan Economic Development, said that, while political uncertainties dragged down the index in March to the lowest level since October, the figure did not bounce back last month even though the impact of political concerns has been decreasing.

"Climbing prices have dented consumer confidence," he said.

The public's expectations for the next six months on consumer price fluctuations dived by 33.8 points to 74.45 points last month from March's 108.25.

The indicator was at its lowest level since 2001, the survey said.

Kolin (歌林) and Sanyo (三洋), two domestic consumer-electronics brands, have announced price increases for air conditioners, refrigerators and washing machines of 3 percent starting today to reflect the rising cost of raw materials.

Feeling pinch from increased commodity prices, a street vendor on I-Tong Street said he had no choice but to adjust the price for his steamed dumplings.

"Everything -- from gas, to flour, to pork to plastic bags -- costs more now. It's difficult to make ends meet," said Hsu Jih-tsun (許日村).

Hsu had left prices unchanged for several years until last month.

The survey also found that optimism about job prospects increased 13.05 points to 72.75 last month.

The nation's unemployment rate fell to 4.45 percent in March, its lowest level since June 2001, the Directorate General of Budget, Accounting and Statistics said last month.

As for the investment environment, those questioned in the survey viewed the nation's relations with China, domestic economic prospects and the political situation as the most important factors influencing the stock market.

"Chinese Premier Wen Jiabao's (溫家寶) policy of cooling down the overheated economy will not have as severe an impact on Taiwan as some have suggested," said Liang Kuo-yuan (梁國源), president of Polaris Research Institute (寶華綜合經濟研究院).

Liang said that, as Taiwan's main exports of electronics are shipped to Europe, the US and China, Wen's plan would not deal a serious blow to Taiwan's economy.

"The fundamentals are sound," Liang said.

The poll surveyed 2,136 people between April 19 and April 21.