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Consumer confidence in Taiwan weakens

Consumer confidence in Taiwan weakens

Taipei, May 27 (CNA) Taiwan's consumer confidence index (CCI) fell in May amid cautious sentiment toward the local economic climate, a survey released by National Central University showed Wednesday. The survey indicated that the CCI for May fell 1.29 points from a month earlier to 91.64. The April figure was the highest ever recorded since the university' Research Center for Taiwan Economic Development started the survey in January 2004. The drop in consumer confidence came after the government on May 22 downgraded its forecast for Taiwan's 2015 economic growth by 0.5 percentage points to 3.28 percent, citing weaker global demand and domestic consumption. Among the CCI's six sub-indexes, which reflect how consumers feel about aspects of Taiwan's economy over the following six months, consumer prices and family finances trended higher in May, while the business climate, the timing of equity market investment, and timing of durable goods purchases fell from the previous month. Only the sub-index for the local job market remained unchanged from April at 114.90 points. The university said the sub-index for consumer prices fell 9.60 points from April to 100.10, the steepest decline among the three sub-indexes that dropped. Market analysts said the weaker sentiment toward the local bourse reflected the government's lower forecast for domestic economic growth, and a movement of funds overseas by many local investors, who were encouraged by the booming equity markets in Shenzhen and Shanghai. With the weighted index on Taiwan's stock exchange closing below the 10,000 point mark in recent sessions, investors have remained alert to future market fluctuations, analysts said. In May, the sub-index for the local business climate fell 1.80 points from April to 86.65, and the sub-index for the timing of durable goods purchases dropped 1.35 points month-on-month to 104.70, the survey showed. The sub-index for local consumer prices rose 3.00 points in May from a month earlier to 55.85, and the sub-index for family finances rose 2.05 points to 87.65. (By Chen Cheng-wei and Frances Huang)


Updated : 2021-09-28 15:24 GMT+08:00