Taiwan’s consumer confidence took another blow this month, sliding for the seventh straight month to its worst state in a year, as people grew increasingly uneasy about economic uncertainties linked to US tariffs, a survey by National Central University showed yesterday.
The consumer confidence index shed 3.65 points to 68.21, a 12-month low with all six sub-
indices on price perceptions, family finances, economic outlook, job opportunities, stock investment prospects, and interest of durable goods purchases weakening, according to the survey conducted by the university’s Center for Taiwan Economic Development.
Photo: George Tsorng, Taipei Times
Center head Dachrahn Wu (吳大任) blamed the confidence retreat on US President Donald Trump’s hostile trade policy and its potential impact on the global supply chain, corporate earnings and financial markets.
Confidence in stock investment posted the fastest decline, with the reading plummeting by 11.25 points to 38.64, while buying interest in durable goods fell 2.86 points to 99.13 and perception of economic prospects in the next six months slid 2.71 points to 84.09, it said.
A sub-index score of 0-100 indicates pessimism, while a score of 100-200 shows optimism.
“The stock market crashed early this month as Trump’s announcement on April 2 of ‘reciprocal’ tariffs on major trading partners rattled investor confidence,” Wu said, adding that the TAIEX plunged more than 2,000 points.
Adding to the gloom, the index for real-estate purchases fell to 96.85, shifting from an optimistic outlook to a pessimistic one to the poorest state since August 2020 when Taiwan was grappling with the COVID-19 pandemic.
The stock rout played havoc on home purchasing ability, especially for young first-home buyers, who rely on capital gains to support down payment and mortgage burdens, Wu said.
“There is a strong link between the stock market and the housing market in Taiwan,” he said. “When people see their investment portfolio shrinking, their ability to buy real-estate property drops significantly.”
The situation could deteriorate if Taiwan’s tariff negotiations with the US fall apart or were disastrous, resulting in factory furloughs and rising unemployment, Wu said.
Taiwan’s household finances could then face a much deeper and more prolonged damage, he said.
In related developments, the government’s business climate monitor last month signaled “yellow-red,” as exports remained robust, but uncertainties loom ahead, the National Development Council said in a report yesterday.
The council’s business climate gauge lost 3 points to 34, as front-loading demand bolstered overtime hours, but business sentiment and local share prices took a downturn.
The index of leading indicators, which seeks to capture the economic scene in the next six months, weakened 0.15 percent to 102.14, as readings on export orders, stock prices and business confidence showed negative cyclical movements.
However, the measure on semiconductor equipment and the labor accession rate picked up, the council said.
The index of coincident indicators, which reflects the current economic state, gained 0.93 percent to 106.32, thanks to favorable exports, industrial production and manufacturing sales, although the reading on electricity utilization weakened, it said.
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