Consumer confidence rose this month for the third consecutive month, but Taiwanese largely remain pessimistic about the economy, a survey released yesterday by National Central University showed.
The consumer confidence index (CCI) gained 2 points to 64.47, as all six components rose moderately, but almost all gauges remained below the neutral threshold, the monthly survey showed.
“Consumer confidence has regained some ground, but it is too early to interpret the upswing as a sustained and meaningful recovery,” said Dachrahn Wu (吳大任), director of the university’s Research Center for Taiwan Economic Development, which conducted the survey.
Photo: CNA
Wu attributed his hesitation to disappointing exports that have slipped into contraction for the past five months and might not recover soon, which he said could negatively affect GDP growth.
The subindex on inflation reported the steepest advance of 3.4 points to 30.55, reflecting an easing in public inflation expectations, he said.
Confidence values of 100 and higher suggest optimism and points lower than 100 indicate pessimism.
The biggest challenge this year was in softening exports, instead of inflation, the economist said.
Monthly export volume shrank from US$40 billion last year to US$30 billion this year, indicating sizeable revenue and profit declines for exporters, Wu said.
Worse yet, they have to shoulder heavier debt burdens after the central bank last week raised interest rates again by 0.125 percentage points to combat inflation, he added.
Respondents also said they felt more confident about job hunting and household income in the coming six months, pushing those values up by 2.6 points and 2.3 points to 66 and 75.8 respectively, the survey showed.
Businesses focused on domestic demand have offered better compensation to address a lack of labor, after emerging from the COVID-19 pandemic.
Further, confidence on the economic outlook rose 2.05 points while purchase interest in durable goods inched up 0.95 points to 109, it said.
The stock investment subindex was at a low level of 24.7, although it climbed 0.7 points from last month, as the local exchange remained firm above the 15,000-point mark, despite bank failures in the US and Europe, it said.
The survey interviewed 2,918 people aged 20 and older between March 18 and Tuesday last week by telephone.
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