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Consumer confidence falls for the first time in eight months: poll

Consumer confidence falls for the first time in eight months: poll

Taipei, May 27 (CNA) Taiwanese people have become less optimistic about the economy for the next six months, with consumer sentiment slipping in May, according to results of a survey released Thursday.
The decline in the consumer confidence index (CCI) - the first in eight months - reflects recent plunges in the stock market as well as uncertainty about whether the next six months would be a good time to invest in stocks, according to the consumer confidence index survey conducted monthly by the National Central University's Research Center for Taiwan Economic Development.
In May, the index fell to 76 points, down 2.68 points from April.
Of the six indicators on the index, four saw an increase in points compared to a month ago, but all six were below 100 points.
The points of each indicator ranges from zero to 200. If an indicator is higher than 100 points, it shows positive sentiment, while indicators under 100 points represent negative sentiment.
With all six indicators under 100 points, the center said, it showed Taiwanese consumers' general outlook was pessimistic.
Of the four indicators that rose from a month ago, confidence in job opportunities for the next six months increased the most, going up 2.55 points to 75.25. This was a reflection of the fact that Taiwan's unemployment rate has been steadily falling from a record high of 6 percent last year to 5.64 percent in March.
Confidence in the overall economy was up 2.4 points to 83.2, compared to the previous month.
Outlook on the financial situation of one's family was at 72.05 points, up 1.55 from April, and outlook on price levels was at 53.65, up 1.5 points.
Two indicators, however, fell - that for durable goods purchases and whether the next six months would be a good time for stock investment.
Confidence in buying durable goods went down 8.45 points to 93.6 points, while confidence in investing in stocks fell the most, plunging 15.6 points to 78.3 points.
Hsu Chih-chiang, head of the research center, pointed out that the drop in confidence was a reflection of two factors. One is the uncertainties in the global economy due to the European debt crisis and the tensions on the Korean Peninsula. The other is the tightened monetary policy of Taiwan's central bank.
Hsu said the drops in the CCI do not represent the economy is declining, it rather shows that the strength of growth in financial aspects of the economy is not strong.
The survey was conducted by phone from May 19-22 with 2,406 Taiwanese aged above 20, who were selected randomly by computers. The margin of sampling error is plus or minus 2 percent, with a 95 percent confidence level.
(By Hsieh Chun-wei and Kay Liu)




Updated : 2021-08-02 19:56 GMT+08:00