Consumer confidence improves slightly in October

On the back of gains posted on the local equity market, consumer confidence in Taiwan has been showing signs of improvement, according to a statement released Thursday by National Central University (NCU).

Citing the results of a survey, the university said that the local consumer confidence index (CCI) for October rose 0.29 points from a month earlier to 78.95, after a 0.90-point month-on-month decline seen in September.

The index consists of six indicators reflecting how much confidence people have in consumer prices, employment, family finances, the local economic climate, the stock market and the possible purchase of durable goods in the coming six months.

In the latest survey, the sub-indexes for the stock market and consumer prices trended higher, while the sub-indexes for the remaining four factors moved lower, the university said.

In October, the sub-index for the stock market factor rose 3.90 points from a month earlier to 72.60, the largest increase among the six CCI factors.

The survey was conducted Oct. 19-22. Between Sept. 1 and Oct. 21, the weighted index on the Taiwan Stock Exchange had gained 237.72 points, or 2.62 percent.

For the factor of consumer prices for October, the sub-index rose 0.05 points from a month earlier to 52.50, the survey shows.

The sub-index for employment fell 1.45 points from a month earlier to 108.15, the steepest decline among the CCI factors, while the sub-index for the local economic climate dropped 0.45 points to 72.85, the sub-index for possible purchase of durable goods shed 0.25 points to 88.75, and the sub-index for family finances fell 0.10 points to 78.85.

According to NCU, a sub-index score of between 0 and 100 indicates pessimism, while a score of between 100 and 200 indicates optimism. Therefore, the results show that among the six sub-indexes, only respondents to the employment factor appeared upbeat over the next six months.

The survey collected 2,410 valid questionnaires and had a confidence level of 95 percent and a margin of error of plus or minus 2.0 percentage points.

Source: Focus Taiwan News Channel