Taiwan’s consumer confidence index (CCI) climbed to a four-month high of 64.69 last month, buoyed by stock market gains fueled by artificial intelligence (AI) demand, even as sentiment toward jobs, household finances and housing weakened, National Central University (NCU) said yesterday.
The headline index rose 1.38 points from August, driven almost entirely by a surge in the stock investment subindex, which jumped 20.48 points to 51.68 — the steepest monthly gain among the six CCI components. The other five subindexes all declined.
“The AI boom has sparked strong demand for Taiwan’s electronics and pushed the local bourse to record highs,” NCU Research Center for Taiwan Economic Development director Dachrahn Wu (吳大任) said.
Photo: CNA
Wu cited how shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest supplier of advanced chips, recently topped NT$1,300, helping propel the TAIEX to a record peak of 26,394 points.
However, overheating risks and external uncertainties remain, Wu said, citing a US proposal for a “50-50” split in Taiwan-US chipmaking capacity.
Such a move could be Taiwan’s biggest economic challenge over the next decade, potentially dampening private investment, overall economic momentum and local stock market performance, he said.
Eventually, “more tech firms could shift their manufacturing capacity to the US,” Wu said.
Wu also flagged a separate US trade investigation into semiconductors and information and communications technology (ICT) products, which could trigger higher tariffs or other headwinds.
The latest CCI survey showed a sharp deterioration in housing-related sentiment. The durable goods subindex fell 3.83 points to 90.7, while the real-estate subindex dropped 3.79 points to 88.94 — both at their lowest levels in more than five years
Broader expectations also softened, with the six-month economic outlook index down 2.99 points to 76.18, despite stronger-than-expected GDP growth this year, driven by AI-fueled exports, the survey showed.
Confidence in household finances fell 2.61 points to 72.54, while expectations for job opportunities dropped 2.05 points to 67.07, weighed down by unpaid leave programs at non-tech firms after Washington imposed a 20 percent tariff on Taiwanese goods in August.
Consumer price expectations showed the smallest decline, edging down 0.77 points to 29.95, reflecting a moderation in inflationary pressures, Wu said.
The CCI survey was conducted by telephone on Sept. 18 and Sept. 19, polling 3,125 adults aged 20 and older, with a margin of error of plus or minus 2 percentage points.
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