Consumer confidence picked up again last month, rising for the fourth consecutive month and hitting a 14-year high, as year-end bonuses and stock rallies boosted the wealth effect, a survey by National Central University showed yesterday.
The Consumer Confidence Index rose to 89.44 last month, up 1.21 points from January, as five of the six component measures saw positive movements, the monthly poll showed.
The subindex on stock investment outlook reported the biggest increase — five points — to 97.3 last month when the TAIEX rallied past 9,600 after the Lunar New Year holiday, the survey said.
Consumers typically register higher confidence during the Lunar New Year holiday, thanks to the distribution of year-end bonuses, said Dachrahn Wu (吳大任), an economics professor at National Central University.
Most companies posted a material earnings improvement last year, aided mainly by the recovering economy in the US and slumping crude oil prices, economists said.
The local bourse is expected to gain momentum this month, as institutional players return from the holiday and build new positions for this year, they added.
The subindex on the nation’s economic prospects edged up to 85.6 last month, compared with 85.1 in January, the survey showed.
The marginal uptick was in line with the nation’s GDP, which grew 3.35 percent last quarter and is expected to grow 3.78 percent this year, the statistics authorities said last month.
Both figures are higher than the previous forecast of 3.17 percent and 3.5 percent respectively.
The stable economic upturn caused consumers to have more confidence in the job market, with the subindex logging 114, up 0.55 points from a month earlier, the survey showed.
Similarly, the subindex on household income gained 1.6 points last month to 82.8, lifted by the distribution of lunar year-end bonuses and wage increases announced by different companies.
The subindex on durable goods consumption registered a slowdown last month to 106.3, but stayed in the positive zone, the survey showed.
A score of 100 suggests optimism and values below the threshold indicate pessimism.
The gauge on consumer prices remained low at 50.65, up 0.15 points from a month earlier, suggesting that consumers are gravely concerned about inflationary pressures.
Food costs continue to increase, although softening transportation and energy prices should keep inflation at bay, government data showed.
The survey questioned 2,430 consumers aged 20 and older by telephone between Feb. 19 and Monday last week. It has a confidence level of 95 percent.
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