Consumer confidence last month weakened slightly as the six factors that make up the consumer confidence index (CCI) all fell, a monthly survey released by National Central University (NCU) yesterday showed.
Last month’s CCI fell 0.58 points from a month earlier to 66.58, NCU said, citing the survey, which was conducted from Feb. 18 to 21.
The CCI measures sentiment over the following six months across six factors: consumer prices, the domestic economic climate, the stock market, durable goods purchases, employment prospects and family finances.
Photo: CNA
The subindex for durable goods purchases last month fell to 97.12, down 1.08 from a month earlier, the steepest decline among the six factors, while the subindex for the stock market also fell noticeably, by 1.06 to 28.46, the survey showed.
The subindices for the local economic climate, family finances, employment and consumer prices edged lower by 0.44, 0.39, 0.28 and 0.23, respectively, from January to 83.25, 80, 73.52 and 37.11 last month, the survey showed.
Subindex scores between 0 and 100 indicate pessimism, while those between 100 and 200 reflect optimism.
Last month’s CCI drop was minor, NCU Research Center for Taiwan Economic Development director Dachrahn Wu (吳大任) said, adding that he would characterize the CCI as being relatively unchanged.
Commenting on the individual factors of the CCI, Wu said that while the local stock market had posted robust gains prior to the survey, the stock subindex still moved lower, indicating that many investors were afraid of possible technical corrections.
However, many investors remained confident about market movements over the longer term and were willing to buy after a pullback, Wu said.
The Directorate-General of Budget, Accounting and Statistics last month raised its forecast for Taiwan's economic growth this year from 3.54 percent to 7.71 percent amid the artificial intelligence boom, supporting Wu's argument.
However, the US’ tariff policies have created global economic uncertainties, especially as a recent US Supreme Court ruling against Washington’s "reciprocal" tariffs prompted US President Donald Trump to use other legislation to impose duties, Wu said.
The Middle East conflict triggered by US and Israeli attacks on Iran has also pushed up international crude oil prices, Wu said, adding that he feared higher oil prices could spark inflationary pressures and hurt US consumption.
Under such circumstances and given the strong correlation between the economies of Taiwan and the US, the local economy could feel the pinch in the coming months, he said.
Also last month, the home-buying index compiled by NCU and Taiwan Realty fell 1.19 points month-on-month to 93.76.
The university's CCI survey collected 3,197 valid responses from Taiwanese consumers aged 20 or older. It had a confidence level of 95 percent and a margin of error of plus or minus 2 percentage points.
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