Taiwan’s consumer confidence inched higher this month, supported by robust exports, even as sentiment toward stock investment fell to a five-month low amid concerns over a potential artificial intelligence (AI) bubble, according to a survey released yesterday by National Central University.
The consumer confidence index rose 0.69 points to 64.65, with five of six subindices hitting six-month highs.
“The broad sentiment improvement is closely linked to strong export momentum, which lent support to the economy and family finances,” said Dachrahn Wu (吳大任), head of the university’s Research Center for Taiwan Economic Development, which conducts the monthly survey.
Photo: CNA
The impressive export performance has played a major role in lifting GDP growth toward 6 percent this year, providing stability for the labor market and household consumption, Wu said.
The drop in stock investment confidence largely reflected profit-taking after the TAIEX repeatedly reached record highs last month, he said.
Meanwhile, the consumption of durable goods also rebounded, apparently aided by eased real-estate lending rules for first-time homebuyers and relocators, Wu said.
Automobile and motorcycle sales also recovered from earlier tariff-related weakness, he said.
However, Wu cautioned that uncertainties remain, including the risk of an AI-driven market bubble and Taiwan’s ongoing trade negotiations with the US.
In a related development, the government’s business climate gauge last month remained in the “yellow-red” expansion zone for a second consecutive month, indicating sustained economic growth, the National Development Council (NDC) said in a report yesterday.
The council’s composite monitoring indicator rose to 35 from a revised 34 in September, bolstered by surging equities and strong demand in the tech sector, NDC Department of Economic Development Director Chen Mei-chu (陳美菊) said.
The index of leading indicators, which projects the economic landscape over the next six months, increased 0.41 percent to 101.18, as gains in export orders, equity prices, manufacturing sentiment and money supply offset declines in construction floor areas, semiconductor equipment imports, and net hiring in the industry and services sectors, the report showed.
The coincident indicators index, which reflects current economic conditions, fell slightly to 104.85, weighed down by mild drops in industrial production, machinery and electrical imports, and manufacturing sales, even as exports, electricity use, retail and restaurant revenue, and overtime hours rose, the report showed.
Investment momentum is expected to remain strong, as semiconductor and supply-chain companies expand capacity to seize AI opportunities, Chen said.
Multinational firms are also increasing operations in Taiwan, while government-led AI initiatives and public-works projects continue at record speed, underpinning domestic demand and business confidence, she said.
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