Consumer confidence hits high on stock sentiment
The consumer confidence index (CCI) rose 1.8 points this month to reach a new high of 92.93, led by warming sentiment toward stock investment.
It’s the highest that the benchmark index has been since its first edition in January 2004, reported the Research Center for Taiwan Economic Development (RCTED, ) at National ). of Central University (
The CCI is made up
six indicators reflecting consumer confidence in stock investment, commodity prices, the job market, durable goods purchases, business climate and household finances.
Consumer confidence in stock investment rose the most among the six sub-indices, increasing 4.9 points to end at 109.70.
At the RCTED’s press announcement, researcher Hsieh Ben- chang ( ) said this month’s CCI signals strong economic growth in the next three to six months.
Hsieh, who directs a big-data research center managed by Taiwan Medical University (
), said that yesterday’s showing on the Taiwan Stock Exchange partially reflects warming sentiment toward stock investment.
TAIEX broke the 10,000-point mark yesterday for the first time in 15 years.
Increases in All Six
All six of CCI’s sub-indices rose this month, with the greatest improvements in sentiment seen in stock investment, domestic commodity prices and household finances.
Consumer confidence in domestic commodity prices rose 1.75 points to end at 52.85, while the index of confidence in household finances increased 1.65 points to reach 85.60.
Strengthening of consumer sentiment was weakest in the domestic job market, which increased 0.65 points to reach 114.90, the business climate (up 0.8 points to 88.45) and durable goods point to 106.05).
Pessimistic on Household
The April report shows that public confidence in household finances, business climate and consumer prices trend to pessimism, Hsieh said.
Under the CCI’s 200-point scale, an index that falls in the 0-100 point zone reflects pessimistic consumer confidence while a figure between 100 and 200 indicates optimism.
Subjects polled this month trended toward optimism on the job market, durable goods and stock investment.
The latest survey was conducted over telephone from April 19 to 23 on 2,448 people nationwide over the age of 20. The margin of error is plus or minus 2.0 percent at the 95-percent confidence level.
According to the report, Taiwan’s consumer confidence index was second- highest among Taiwan, mainland China, Hong Kong and Macau.
A separate survey conducted in March showed that consumer confidence was highest in mainland China (104.3 points), followed by Taiwan (88.3) and Macau (85.3). Hong Kong’s consumer confidence index in the first quarter was lowest at 83.8.
Compared to the fourth quarter of last year, China and Taiwan saw an increase of 0.3 and 2.1, respectively, while the index for Hong Kong and Macau declined by 0.9 and 2.0.