Tue, Jul 30, 2019 - Page 12 News List

Consumer confidence up on dividend income: poll

By Crystal Hsu  /  Staff reporter

Consumer confidence picked up this month, with the sub-index on household income rising to a record level on the back of dividend income, a survey by National Central University showed yesterday.

The consumer confidence index rose 1.68 points from last month to 81.48, led by an improvement in stock investments, the monthly survey showed.

Scores of less than 100 suggest pessimism, while values above the threshold indicate optimism.

Most local companies distribute cash and stock dividends in July and August, benefiting investors, said Dachrahn Wu (吳大任), a professor of economics at the university.

That is why the sub-index on household income rose 0.55 points to 91.15, the highest in the survey’s history, Wu said.

The reading on stock investment confidence posted the biggest recovery at 8.8 points to 67.4, as the local bourse rallied to near 11,000 points after the US and China returned to the negotiating table to resolve a trade dispute, he said.

The sub-index remains some distance away from its historical average of 75 following a plunge in May after Washington raised tariffs on Chinese goods, triggering selloffs in local shares.

People also turned slightly more optimistic about the local economy, with the sub-index rising 0.45 points to 86.9, the strongest in 51 months, the survey said.

Taiwan’s export-focused economy is expected to improve in the second half of this year with the arrival of a high season for electronic products.

Against the backdrop, people show more interest in purchases of durable goods, lifting the gauge by 0.2 points to 92.45.

The survey also showed that inflation expectations increased 3.7 points to 53.35, the highest in 17 months, while the sub-index on the job market bucked the uptrend with a decline of 3.65 points from a month earlier.

Wu said the retreat is seasonal and had to do with the entry of new graduates into the job market.

He said the job market would recover at the end of the summer vacation.

The poll surveyed 2,761 adults by telephone from July 19 to Tuesday last week.

This story has been viewed 1395 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top