Due to a lack of effective government polices to stimulate consumer sentiment, the nation's Consumer Confidence Index last month slid to a new low in six months, although the fluctuation is minute, according to a monthly survey released by National Central University yesterday.
Composed of six components, the index edged down 1.83 points from February to 75.13 points last month as more respondents questioned in the survey turned pessimistic about the economy in the near future.
The index gauges the public's expectations on stock performance, household finances, durable goods, job opportunities, consumer price fluctuations and the domestic economic outlook for the next six months.
Public confidence in stock market investments showed the biggest drop, with 63.8 percent of respondents saying they would stay away from the stock market within the next half year, up from 58.7 percent polled in February, according to the university's Research Center for Taiwan Economic Development, the report's issuer.
The escalation of international crude oil prices, meanwhile, continues to haunt consumers, as a startling 83.8 percent said they expect consumer prices to climb, while only 13.3 percent said prices would remain stable in the near future.
Shia Ben-chang (謝邦昌), professor of statistics and information science at Fu Jen Catholic University, said weaker consumer sentiment was mainly driven by rising oil prices, the lackluster performance of stocks and China's "Anti-Secession" Law, although the law only had a limited impact.
"Although the index did not show a marked drop, it should serve as a warning to the government as it is failing to present stimulating policies to boost consumer confidence," Shia said.
"The housing market looks rosy, but people remain cautious over buying durable goods. Government officials should do something to reverse people's indifference toward the market," he added.
As only limited fluctuations in the US dollar are expected in the near future, Shia said the future trend of the Chinese yuan would play a major role in the direction of the index.
The survey interviewed 2,080 residents between March 18 and March 23.
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