Public confidence in the economy and private consumption increased moderately this month, with Taiwanese exporters benefiting from strong sales of new-generation handheld devices, the results of a survey released yesterday by Cathay Financial Holding Co (國泰金控) showed.
The improved sentiment might indicate that a modest economic recovery would continue for the rest of the year, although overall confidence levels remain low, the nation’s largest financial service provider said.
According to the company, 22 percent of respondents said they believe the economy will pick up in the coming six months, while 41.2 percent expect the situation to deteriorate.
“That represents a small decline in the number of pessimists after the government’s business climate indicators flashed ‘green’ for two consecutive months, suggesting the economy is on course for a small-scale recovery,” Cathay Financial economic research department assistant manager Achilles Chen (陳欽奇) said.
GDP growth might climb further after returning to positive territory in the second quarter, Chen said.
The Directorate-General of Budget, Accounting and Statistics is due to release its third-quarter GDP figures by the end of this month.
Better-than-expected sales of Apple Inc’s iPhone 7 and other technology products have bolstered the earnings of the nation’s firms in the company’s supply chain, Chen said.
Handset camera lens supplier Largan Precision Co (大立光), which counts Apple Inc and Xiaomi Corp (小米) among its customers, told an investors’ conference last week that compared with last quarter, the firm has received an uptick in orders for this month and next month.
On the question of personal incomes, a slight majority of respondents expect their salaries to increase going forward and are therefore a bit more willing to buy durable and big-ticket items.
That finding came as the TAIEX hovered above the 9,000 point level despite corrections and a light turnover, the survey said.
The local bourse has received support from foreign fund inflows as global central banks maintain a loose monetary policy to stimulate economic growth, Chen said.
While Europe and Japan could maintain their policy rates, the US Federal Reserve will probably embark on a tightening cycle in December, Chen said, calling on investors to prepare for potential fund movement changes.
On the question of the property market, most respondents said that it would be ill-advised to buy or sell houses at present.
Cathay Financial polled 18,023 of its customers for the online survey between Oct. 1 and Oct. 7.
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