Consumer confidence slips in June, fueled by economic woes
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
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.