TAIPEI: Consumer confidence weakened somewhat this month, reversing five months of uptick, as the nation’s soft economic showing dampened the public’s confidence in stock investments, a survey by National Central University showed here the other day.
The consumer confidence index printed 91.64 this month, receding from a record high of 92.93 last month, dragged by shifting sentiments toward stock investment, after the government last week cut its forecast for GDP growth this year to 3.28 percent, from 3.78 percent estimated in February, said Wu Dachrahn, director at the university’s Research Center for Taiwan Economic Development, which was responsible for the survey.
“Stock investors turned less optimistic this month after the domestic economy showed signs of slowing down in the first quarter,” Wu said by telephone, adding that fund flight from the local bourse to China is also weighing on investment.
Consequently, the subindex on stock investment shed 9.6 points to 100.1 this month, marginally above the neutral threshold, the monthly survey found.
Confidence scores above 100 indicate optimism, while values below that suggest pessimism.
Financial Supervisory Commission Chairman William Tseng on Monday said the local bourse had lost about NT$6 trillion (US$195.28 billion) in turnover since 2011 among active traders, who are seeking better returns in China, Hong Kong and elsewhere.
Stock performance plays an important role in swaying consumer confidence in Taiwan because individuals account for a majority of investors, Wu said.
The TAIEX has fallen by 1.3 percent so far this month, according to data from Taiwan Stock Exchange.
The subindex on the economic outlook dropped 1.8 points to 86.65 and the gauge on durable goods consumption fell 1.35 point to 104.7, the survey said.
The subindex on job-hunting opportunities remained unchanged at 114.9 this month, comfortably above neutral, as the job market tends to lag behind other indicators in responding to economic changes, Wu said.
The healthy job market coupled with wage increases would lend support to domestic demand while exports falter, he said.
The subindex on household income gained 2.05 points to 87.65 this month, consistent with the government’s survey that average wages increased 1.58 percent in the first quarter.
The subindex on inflation reported the biggest gain of 3 points to 55.85 as consumer prices continued to elevate mildly, stripping oil price disruptions, the survey said.
The survey interviewed 2,442 Taiwanese adults by telephone between Tuesday last week and Saturday, with a confidence level of 95 percent.
