Consumer confidence weakens for 3rd straight month in December

Taipei, Dec. 27 (CNA) Taiwan's consumer confidence index (CCI) weakened for the third consecutive month in December as all six sub-indexes moved lower from a month earlier, National Central University (NCU) said Friday.

Citing a survey conducted from Dec. 18-21, NCU said the CCI fell 0.88 points from a month earlier to 74.61 in December after a 1.57-point decline in November.

The CCI gauges confidence in consumer prices, the local economic climate, the stock market, the likelihood of purchasing durable goods, employment prospects and family finances for the next six months.

The stock market sub-index fell the most, NCU added. It dropped 2.89 from a month earlier to 52.99, the lowest level since April, when the figure stood at 24.65, according to the survey.

Speaking with reporters, Yao Ruey (姚睿), an NCU economics professor, said the poor stock market outlook came after uneven gains. The local tech sector has continued benefiting from emerging technologies, such as artificial intelligence, but old economy industries have remained weak.

The sub-indexes on consumer prices, the local economic climate, and family finances decreased by 0.56, 0.51 and 0.49, respectively, from a month earlier to 41.23, 88.7 and 84.42 in December.

Meanwhile, the sub-indexes on purchases of durable goods, such as cars and houses, and employment decreased by 0.44 and 0.41, respectively, to 102.66 and 77.63.

In NCU surveys, a CCI sub-index score of 0-100 indicates pessimism, while a score of 100-200 shows optimism, the university said.

It noted that the only factor showing optimism in December was purchasing durable goods. However, the figure was still a two-year low.

Also in December, another NCU survey conducted with Taiwan Realty Estate Co. showed a month-on-month fall of 0.55 points in the home buying index, which stood at 99.84, a new low in more than four years.

Chou He-ming (周鶴鳴), first vice president of Taiwan Realty Estate said many home buyers had become cautious after mortgage offers by banks had become more restrictive. The local central bank imposed its seventh round of selective credit control on the home market in June.

In addition, financial authorities have launched thorough investigations into the operations of banks to tighten their control on lending. This has also impacted the property market, Chou said.

Chou said property transactions will shrink and prices will remain stagnant in 2025.

The university's CCI survey in July collected 3,040 valid questionnaires from consumers in Taiwan aged 20 and above. It had a confidence level of 95 percent and a margin of error of plus or minus 2.0 percentage points.