Taiwan consumer confidence rebounds in May, driven by stock market

Taipei, May 27 (CNA) Taiwan's consumer confidence index (CCI) rebounded in May, rising by 8.83 from April to hit 72.2, mainly due to a bullish stock market that has stayed above 21,000 points, according to the latest monthly Taiwan Consumer Confidence Index Report released by National Central University (NCU).

May's CCI marked a noticeable rise from a year-low of 63.37 recorded last month, the report issued by the NCU's Research Center for Taiwan Economic Development on Monday showed.

The April data followed the stock market plummeting by 774.08 points on April 19, coupled with the fallout of a 7.2 magnitude earthquake in Hualien on April 3 and subsequent aftershocks.

The CCI gauges the level of confidence people have over the next six months toward employment prospects, family finances, consumer prices, the local economic climate, the stock market, and the likelihood of purchasing durable goods.

The stock market sub-index increased to 59.35 in May, up from 34.7 in April. That marks the largest increase of the six sub-indices, the center said.

A strong stock market in May boosted Taiwanese consumer confidence across the board, Dachrahn Wu (吳大任), director of the university's Research Center for Taiwan Economic Development, noted.

The employment prospects sub-index rose by the second highest increase to 69.66 from 64.72, while the household finances sub-index ended up 4.19 at 78.84, Wu said.

May 22: Jobless rate dips to 24-year low for April on strong domestic demand

The consumer prices sub-index increased by 2.61 -- the least of all the indices -- to end at 31.39. That figure, however, still marks a 6.99 year-on-year rise, Wu added.

Wu noted that inflationary pressure caused by electricity rate hikes in April appears to have been offset by a bullish stock market, which helped boost income and real-estate value, despite stagnant wages, Wu said.

The random telephone survey was conducted by the NCU Research Center for Taiwan Economic Development in collaboration with Fu Jen Catholic University Artificial Intelligence Development Center, Dr. Advice Corporation Limited, and Taiwan Realty Co. from May 18-21.

It questioned 3,060 Taiwanese citizens aged 20 and above, had a confidence level of under 95 percent and a margin of error of plus or minus 2.0 percentage points.

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