Con­sumer con­fi­dence slips in June, fu­eled by eco­nomic woes

The China Post - - TAIWAN BUSINESS - BY ENRU LIN

Tai­wan’s con­sumer con­fi­dence in­dex (CCI) fell 1.06 points in June to 90.58, dragged by sen­ti­ment in eq­uity mar­ket in­vest­ment and in na­tional eco­nomic out­look, ac­cord­ing to a sur­vey re­leased yesterday by Na­tional Cen­tral Univer­sity ( ).

The monthly sur­vey asks a cross-sec­tion of Tai­wanese con­sumers for their views and spend­ing in­ten­tions for the next six months.

Na­tional Cen­tral Univer­sity’s latest sur­vey shows that the over­all CCI dropped 1.06 points from May to 90.58, led by flag­ging con­fi­dence in the over­all eco­nomic out­look and in mak­ing an eq­uity mar­ket in­vest­ment.

The sub-in­dex for Tai­wan’s eco­nomic out­look stood at 84.60 in June, down 2.05 from May.

Con­fi­dence in eq­uity mar­ket in­vest­ment also slipped last month with the sub-in­dex drop­ping 9.90 points from May to 90.20, mainly on Greece’s de­layed debt pay­ment and a slump in the Chi­nese stock mar­ket last week, ac­cord­ing to econ­o­mists.

“The over­all in­vest­ment cli­mate does not ap­pear ideal and so con­sumer sen­ti­ment to­ward the stock mar­ket has drifted into pes­simism,” Dachrahn Wu (

), eco­nom­ics pro­fes­sor and head of Na­tional Cen­tral Univer­sity’s Re­search Cen­ter for Tai­wan Eco­nomic De­vel­op­ment (RCTED,

), said yesterday. In the univer­sity’s CCI in­dex, a score from 100 to 200 sug­gests op­ti­mism while scores that fall be­low 100 in­di­cate con­sumer pes­simism.

Wu said the over­all in­dex is likely to dip again in July as re­search in­sti­tu­tions con­tinue to cut their fore­casts for Tai­wan’s eco­nomic growth.

10.5-Year High in Com­mod­ity

Price Con­fi­dence

Sen­ti­ment weak­ened in in­vest­ment and over­all eco­nomic cli­mate, but the four re­main­ing sub- in­dices posted slight in- creases in June.

Con­sumer con­fi­dence rose in the na­tional job mar­ket, fam­ily fi­nances, durable goods pur­chase and com­mod­ity prices.

The sub-in­dex for com­mod­ity prices saw the great­est in­crease in June, of 2.60 to 58.45, the high­est in ten and a half years.

The rise was due mainly to the fall of global energy prices and re­cent price sta­bil­ity for house­hold goods, ac­cord­ing to the sur­vey cen­ter.

In June, the sub-in­dex for fam­ily fi­nances was up 1.25 points to 88.90, while the con­sumer con­fi­dence for durable goods pur­chase rose slightly by 0.90 to reach 105.60.

Con­sumer con­fi­dence in Tai­wan’s job mar­ket over the next six months also saw a slight mon­thon-month gain of 0.85 points to 115.75.

This tele­phone sur­vey polled 2,453 Tai­wan na­tion­als aged 20 and older from June 19 to 23. It has a con­fi­dence level of 95 per­cent and a mar­gin of er­ror of plus or mi­nus 2 per­cent.

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