Consumer sentiment weakened slightly this month as Taiwanese gained more confidence about stock investments and income levels, but lost interest in purchases of durable goods, a National Central University survey showed yesterday.
The consumer confidence index fell two points from last month to 70.9, the survey found.
“The surge in COVID-19 infections around the world is taking a toll on consumer confidence, even though people in some countries started to receive vaccine shots,” said Dachrahn Wu (吳大任), director of the university’s Research Center for Taiwan Economic Development, which conducted the survey.
Photo: Ritchie B. Tongo, EPA-EFE
The confidence reading on purchases of durable goods, mainly real estate, slumped 13.55 points to 111.65 after various government agencies early this month introduced unfavorable policies to curb property price hikes.
Survey respondents were also expecting to face more difficulty in finding jobs, with the index falling 2.85 points to a decade low of 61.95, it said.
The nation’s job market is still under the effects of the COVID-19 pandemic, especially tourism-related businesses, but electronics suppliers have benefited from the remote-working and learning economy, government data have shown.
Wu expects the adverse effects of the pandemic to persist through the first half of next year, when mass vaccinations are expected to bear fruit.
The consumer confidence index consists of six sub-indices reflecting public confidence over the next six months. Confidence values of higher than 100 indicate optimism and scores lower than the neutral threshold suggest a pessimistic sentiment.
The sub-index on the economic outlook softened a fractional 0.35 points to 84.9, while the gauge on consumer prices decreased 0.2 points to 41.15, as cheaper oil and raw material prices continued to weigh on inflation measures.
Taiwanese also grew mildly more confident about their income levels in the coming six months, with the sub-index rising 1.55 points to 87.15, the survey showed.
The investment sub-index rose 3.4 points to 38.6, as the TAIEX repeatedly rallied to record highs on the back of excessive liquidity. Despite the rise, the figure remained below 40 for the fourth consecutive month and was far lower than the historical average of 73, the research center’s data showed.
Yao Jui (姚睿), an economist at the university, said confidence in the stock market over the next six months is at a relatively low level, due to an already high valuation of the TAIEX, a grim economic outlook amid the pandemic and a K-shaped economic recovery — meaning uneven, but continued growth among different sectors and income groups — in Taiwan this year.
The telephone survey interviewed 2,862 adults from Dec. 18 to Monday last week.
Additional reporting by CNA
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