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Confidence in economy regained in July: poll

2012/07/16 20:51:34

Taipei, July 16 (CNA) A survey released by Cathay Financial Holding Co. Monday found that the individual investor confidence index for the local economy rebounded from minus 52.6 in June to minus 21.8 this month.

The survey, conducted July 1-7, found that the confidence in the economy jumped after many countries eased their monetary policies and the government's economic indicators improved.

Respondents to the survey rated each question on a scale of 200, with 100 indicating a very positive response and minus 100 signaling a very negative response.

The central banks of major countries have also provided further incentives for economic stimulation amid the sluggish economy. The eased policies were part of the momentum that boosted market confidence, the holding company said in a report.

The economic prospects were not seen as positive, although hopes of a bottoming out of the economy have risen, the report noted.

Pessimism over the local bourse eased but still remained conservative due to lingering concern over the eurozone, which is still laboring under fundamental problems that have not yet been resolved, the report went on.

Of the the respondents, 40 percent listed government policies and 30 percent described the development of the eurozone as the key forces driving the economy and stock market, according to the survey results.

In addition, the inflation pressure expected by the respondents continued to decline as prices of global raw materials fell, with the index for inflation expectation dropping from 76.6 in June to 64.2, the lowest since the survey was launched in 2010.

At the same time, the respondents said they expect a 3.41-3.76 percent increase in prices of daily necessities, compared with 4.05-4.58 percent in June.

The survey collected 12,270 valid questionnaires online from the company's clients.

(By Tien Yu-pin and Kendra Lin)