Taipei: Taiwan's consumer confidence index (CCI) saw an improvement in November, with five of its six sub-indicators rising from October, as reported by National Central University's Research Center for Taiwan Economic Development on Thursday.
According to Focus Taiwan, the survey conducted by the center indicated that the index rose by 0.69 points to 64.65 in November. This uptick was driven by increases in consumer prices, domestic economic climate, durable goods purchases, employment prospects, and family finances indexes. The stock market index was the only sub-index that saw a decline.
Dachrahn Wu, director of the research center, shared with reporters that the economic mood had been gloomy since U.S. President Donald Trump announced reciprocal tariffs in April. However, the sentiment has shifted towards cautious optimism, as the impacts have been less severe than anticipated, and there is potential for annual economic growth to exceed 6 percent by 2025.
Wu highlighted that the index for durable goods purchases experienced the largest increase, rising by 4.63 points to 97. Additionally, the home-buying index compiled by the university and Taiwan Realty rose by 3.84 points to 94.26, signaling a rebound in real estate confidence. This improvement was attributed to Taiwan's solid economic performance, which has alleviated concerns about the potential impact of tariffs on the housing market.
Despite the positive overall trend, the stock market index continued its decline for the second consecutive month, dropping by 9.5 to 27.02. Wu explained that this was due to the close ties between Taiwan's market and the U.S. stock market, where weakening household spending, low consumer confidence, and fears of an "AI bubble" have dampened investor sentiment.
Wu also noted that when survey participants were asked if "the next six months would be a good time to invest," the low score suggested reluctance to buy at high levels, given the TWSE Capitalization Weighted Stock Index's proximity to its peak, rather than a lack of confidence.
The CCI has remained around 62-65 in recent months, reflecting cautious sentiments amid tariff concerns. Future prospects depend largely on the outcome of negotiations with the United States, particularly concerning Taiwan's investment commitments and semiconductor tariff levels.
The CCI survey gathered 3,138 valid responses from Taiwanese consumers aged 20 and older between November 18-21, with a 95 percent confidence level and a margin of error of plus or minus 2 percentage points.