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Consumer confidence falls for 7th consecutive month

Consumer confidence falls for 7th consecutive month

Taipei, Nov. 27 (CNA) Taiwan's consumer confidence weakened for the 7th consecutive month in November but sentiment toward the local economic climate recovered after falling in the previous six months, according to a survey released by National Central University on Friday.

According to the survey, Taiwan's consumer confidence index (CCI) for November fell 0.40 points from a month earlier to 84.20 although the decline was smaller than a month-on-month drop of 0.72 points recorded in October.

The survey was conducted by the university's Research Center for Taiwan Economic Development.

Among the six composite factors in the November CCI, which reflect how consumers feel about different aspects of Taiwan's economy in the next six months, only the sub-index for the local economic climate registered a rebound, up 0.35 points from a month earlier to 76.70, the survey indicated.

However, the five other factors recorded a decline to drag down the overall consumer confidence level for the month at a time when consumer sentiment has been hurt by falling global demand and the toll it has taken on Taiwan's exports and economic growth in 2015.

In the third quarter, Taiwan's gross domestic product contracted 1.01 percent from a year earlier, the worst performance since the third quarter of 2009. In the three month period, the country's merchandise exports fell 13.86 percent year-on-year in U.S. dollar terms.

The survey showed that the November sub-index for the timing of equity market investment fell 1.10 points from a month earlier to 71.40 and the drop was the steepest among the CCI's five falling factors.

The sub-index for the timing for durable goods purchases in November stood at 101.55 points, down 0.50 points from a month earlier, the second biggest decline among the five falling factors, according to the survey.

The survey indicated that the November sub-index for the local job market dropped 0.45 points from a month earlier to 112.20, while the sub-index for consumer prices dropped 0.40 points month-on-month to 56.90. The sub-index for family finances registered the smallest decline among the five declining factors in November, down 0.30 points from a month earlier to 86.45, the survey showed.

According to the university, a sub-index score ranging between 0 and 100 indicates pessimism while a score ranging between 100 and 200 indicate optimism. As a result, only the sub-indexes for the local job market and the timing for durable goods purchased pointed to optimism, while the remaining four of the six factors pointed to pessimism.

The survey, conducted during the Nov. 19-23 period, collected 2,442 valid questionnaires and had a confidence level of 95 percent and a margin of error of plus or minus 2.0 percentage points, the university said. (By Chen Cheng-wei and Frances Huang)

Updated : 2021-09-22 06:56 GMT+08:00