The consumer confidence index (CCI) rose to its highest in more than six years, with public sentiment toward the job market in the near term showing the strongest growth, a survey by National Central University showed yesterday.
The survey, which polled 2,384 adults across the nation from Nov. 19 to Nov. 22, showed that the CCI jumped 1.47 points from the previous month to 81.66 this month, which is the highest since March 2004, amid a robust recovery in employment.
Hsu Chih-chiang (徐之強), director of the university’s Research Center for Taiwan Economic Development, attributed the increase chiefly to a pickup of 3.25 points in the sub-index for job opportunities in the next six months, which rose to a record-high of 90.45 points.
“Last month’s unemployment rate dropped to below 5 percent, indicating that job market conditions have improved. Consumers felt more confident in looking for jobs as the economy is recovering,” Hsu said by telephone.
Public confidence about household financial conditions over the next half year remained the second-strongest among all categories, with the sub-index rising to 75.6 points, up from the 73.9 recorded last month, the survey showed.
Hsu said that stronger confidence in the job market and household financial conditions meant that private consumption could strengthen in the near future and be the main driving force for next year’s economic growth.
The survey also showed that the public was optimistic about near-term economic prospects, with the sub-index climbing to a record-high of 84.3 points, up 2.15 points from last month’s 82.15, after the government raised its GDP growth forecast for this year to 9.98 percent.
However, the public didn’t feel as confident about purchasing durable goods over the next half year in the wake of the central bank’s credit-tightening measures to curb soaring property prices in Taipei, with the sub-index remaining flat at 89.4 points.
“Although solid economic growth encouraged consumers to buy durable goods such as cars and houses, the central bank’s policy rate hikes in June and in September increased borrowing costs for consumers,” Hsu said.
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