Con­sumer con­fi­dence weak­ens for 4th con­sec­u­tive month

The China Post - - TAIWAN BUSINESS -

Tai­wan’s con­sumer con­fi­dence weak­ened for the fourth con­sec­u­tive month in Au­gust amid con­cerns over an eco­nomic slow­down at home and abroad, a sur­vey by Na­tional Cen­tral Univer­sity showed Thurs­day.

The sur­vey re­sults echoed a move by the gov­ern­ment to down­grade its forecast for Tai­wan’s 2015 eco­nomic growth to 1.56 per­cent from an ear­lier es­ti­mate of 3.28 per­cent at a time when global in­vestors fear slow­ing de­mand, in par­tic­u­lar from main­land China, the sec­ond largest econ­omy in the world.

The sur­vey in­di­cated that Tai­wan’s con­sumer con­fi­dence in­dex (CCI) for Au­gust fell 3.43 points from a month ear­lier to 86.15, mark­ing a fall for four months in a row, ac­cord­ing to the univer­sity’s Re­search Cen­ter for Tai­wan Eco­nomic De­vel­op­ment.

All six sub-fac­tors in the CCI which re­flect how con­sumers feel about as­pects of Tai­wan’s econ­omy over the fol­low­ing six months trended lower in Au­gust, ac­cord­ing to the re­search cen­ter.

The sub-in­dex for the tim­ing of eq­uity mar­ket in­vest­ment suf­fered the steep­est de­cline in Au­gust, down 11.30 points to 73.20. Based on the re­search cen­ter’s stan­dards, when­ever a sub-in­dex falls more than 2 points, the de­cline in the sub-in­dex for the tim­ing of eq­uity mar­ket in­vest­ment is de­scribed as “sig­nif­i­cant.”

The sig­nif­i­cant fall in this par­tic­u­lar sub-in­dex re­sulted from heavy losses in the lo­cal eq­uity mar­kets and tur­moil in global mar­kets, es­pe­cially Wall Street and China. Since the be­gin­ning of this year, the weighted in­dex on the Tai­wan Stock Ex­change had fallen about 17 per­cent as of Wed­nes­day.

The sur­vey showed that the sub-in­dex for the lo­cal busi­ness cli­mate fell 4.15 points from a month ear­lier to 77.20, also a sig­nif­i­cant drop by the re­search cen­ter’s stan­dards, af­ter Tai­wan re­ported a year on-year fall in ex­ports for the sixth con­sec­u­tive month in July. In the seven months of this year, Tai­wan’s out­bound sales dropped 7.8 per­cent from a year ear­lier.

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