Consumer confidence in Taiwan surged in July as the stock market continued its upward trend, according to a survey conducted by National Central University (NCU). The consumer confidence index (CCI) rose by 1.73 points from the previous month to reach 68.39, the highest level since April 2022. The CCI measures people’s confidence in employment prospects, family finances, consumer prices, the local economic climate, the stock market, and the likelihood of purchasing durable goods in the next six months.
The survey revealed that all sub-indexes related to the six factors improved in July. The stock market sub-index experienced the highest growth, increasing 5.1 points to reach 49.2, driven by optimism surrounding artificial intelligence development and the Taiex, the weighted index on the Taiwan Stock Exchange, returning to the 17,000 point mark. Additionally, the sub-index on purchasing durable goods saw the second-highest growth, rising by 2.05 points to 111.75, as consumers displayed a willingness to spend.
Other sub-indexes, including consumer prices, employment, and family finances, also showed positive growth in July. However, the sub-index on the local economic climate had the smallest increase among the six factors, with a growth of only 0.3 points to 80.9. Despite strong domestic demand, Taiwan’s exports have been impacted by weak global demand, causing some concern among consumers.
In the first half of this year, Taiwan’s exports totaled US$202.1 billion, down 18.0 percent compared to the same period last year. Outbound sales also decreased by 23.4 percent year-on-year, reaching US$32.32 billion. Nevertheless, the overall consumer sentiment remained positive, with the only pessimistic factor being the likelihood of purchasing durable goods in the next six months.
Another survey conducted by NCU in collaboration with Taiwan Realty showed a 2.1-point increase in the index for home buying in July, reaching 107.35. Dachrahn Wu, director of NCU’s Research Center for Taiwan Economic Development, attributed this rise to government measures aimed at stabilizing home prices, stating that the local property market had reached its lowest point in the first quarter of this year, leading to renewed confidence among home buyers.
The NCU survey collected 2,946 valid questionnaires from Taiwanese consumers aged 20 and above, ensuring a confidence level of 95 percent with a margin of error of plus or minus 2.0 percentage points. The positive consumer sentiment reflects the optimism surrounding Taiwan’s stock market and the potential end to the U.S. Federal Reserve’s rate hike cycle. As the economy continues to recover, consumers in Taiwan are displaying increased confidence in their financial prospects and willingness to make purchases.
Disclaimer: The information provided in this article is based on the survey conducted by National Central University. The views and opinions expressed herein are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer, or company.
