The consumer confidence index (CCI) this month slid by 0.49 points to 62.59 from a month earlier, the lowest in 13 years, amid concerns that global inflation and a recession would hit Taiwan’s export-reliant economy, National Central University said yesterday.
The index gauges the public’s confidence toward employment, household finances, consumer prices, the local business climate, stock market and durable goods purchases over the next six months. It is often used to predict consumer spending, which is a major pillar of GDP.
Among the six sub-indices, consumer prices increased 0.4 points to 26.9 last month, according to the university’s Research Center for Taiwan Economic Development, which released the results of a survey it conducted from Sept. 18 to Wednesday last week.
Photo: CNA
The survey showed that 50.8 percent of respondents expect consumer prices would increase significantly in the next six months, while 45.6 percent expect a mild increase, center director Dachrahn Wu (吳大任) told a news conference.
The other five sub-indices weakened this month, with durable goods purchases dropping 1.05 points to 108.35, the lowest in 15 months, as consumers delayed making big purchases given inflationary and recession risks, the survey showed.
Public confidence in the local economy slid 0.8 points to 78.9, the lowest in eight years, while household income declined 0.75 points to 73.6, the lowest in 12 years, it said.
About 47 percent of respondents expect household income to remain flat over the next six months, while 45 percent expect it to further deteriorate, the survey showed.
The sub-indices on employment and the stock market moved lower by 0.4 and 0.3 to 63.3 and 24.5 respectively this month.
The stock market reading hit a new low since the university began compiling CCI data in early 2001. As for timing on buying a home, a separate index jointly compiled by the university and Taiwan Realty Co (台灣房屋) dropped by 0.8 points to 102.7 this month.
With the local economy showing signs of a slowdown as interest rates rise, consumer sentiment toward the property market and the possibility of buying durable goods was affected, Wu said.
The CCI is likely to continue retreating in the fourth quarter due to the effects of global inflation and weakening demand on the nation’s export-based economy, he said.
“Taiwan’s GDP growth would not be able to reach 3 percent this year if exports decline in the fourth quarter,” Wu said.
This month’s survey collected 2,861 valid questionnaires from consumers in Taiwan aged 20 or older.
NEW IDENTITY: Known for its software, India has expanded into hardware, with its semiconductor industry growing from US$38bn in 2023 to US$45bn to US$50bn India on Saturday inaugurated its first semiconductor assembly and test facility, a milestone in the government’s push to reduce dependence on foreign chipmakers and stake a claim in a sector dominated by China. Indian Prime Minister Narendra Modi opened US firm Micron Technology Inc’s semiconductor assembly, test and packaging unit in his home state of Gujarat, hailing the “dawn of a new era” for India’s technology ambitions. “When young Indians look back in the future, they will see this decade as the turning point in our tech future,” Modi told the event, which was broadcast on his YouTube channel. The plant would convert
‘SEISMIC SHIFT’: The researcher forecast there would be about 1.1 billion mobile shipments this year, down from 1.26 billion the prior year and erasing years of gains The global smartphone market is expected to contract 12.9 percent this year due to the unprecedented memorychip shortage, marking “a crisis like no other,” researcher International Data Corp (IDC) said. The new forecast, a dramatic revision down from earlier estimates, gives the latest accounting of the ongoing memory crunch that is affecting every corner of the electronics industry. The demand for advanced memory to power artificial intelligence (AI) tasks has drained global supply until well into next year and jeopardizes the business model of many smartphone makers. IDC forecast about 1.1 billion mobile shipments this year, down from 1.26 billion the prior
People stand in a Pokemon store in Tokyo on Thursday. One of the world highest-grossing franchises is celebrated its 30th anniversary yesterday.
Zimbabwe’s ban on raw lithium exports is forcing Chinese miners to rethink their strategy, speeding up plans to process the metal locally instead of shipping it to China’s vast rechargeable battery industry. The country is Africa’s largest lithium producer and has one of the world’s largest reserves, according to the US Geological Survey (USGS). Zimbabwe already banned the export of lithium ore in 2022 and last year announced it would halt exports of lithium concentrates from January next year. However, on Wednesday it imposed the ban with immediate effect, leaving unclear what the lithium mining sector would do in the
RSS