Consumer confidence weakens to lowest in more than 2 years: Survey

Taipei, Aug. 27 (CNA) Taiwan's consumer confidence index (CCI) fell to its lowest level in more than two years in August, with five of the six factors in the index moving lower from a month earlier amid concerns over the impact of U.S. tariff policies, National Central University (NCU) said Wednesday.

Citing a survey conducted Aug. 18-21, NCU said the August CCI fell 1.07 points from a month earlier to 63.31, the lowest level since April 2023, when the index stood at 63.18.

The CCI measures consumer sentiment over the next six months in six areas: prices, the local economic climate, the stock market, durable goods purchases, employment prospects and family finances.

Five of the six factors moved lower from a month earlier, with the subindexes on durable goods purchases, consumer prices and family finances down 2.04, 2.02 and 1.5 points, respectively, to 94.53, 30.72 and 75.15 in August, the survey found.

In addition, the subindexes on the local economic climate and employment fell 1.48 and 1.41 points, respectively, to 79.17 and 69.12, the survey showed.

Bucking the downturn, the subindex on the stock market rose 2.09 points from a month earlier to 31.2 in August, according to the survey.

Speaking with reporters, Dachrahn Wu (吳大任), director of the NCU Research Center for Taiwan Economic Development, said U.S. tariff policies that impose a 20 percent levy on Taiwan, which went into effect earlier this month, have sparked fears that export growth momentum will be compromised, hurting companies' profitability and weakening economic fundamentals.

Commenting on the subindex on the stock market, Wu said the increase largely reflected optimism over possible rate cuts by the U.S. Federal Reserve, which have boosted share prices recently. However, he cautioned that potential weakness in the economy could weigh on the stock market going forward.

According to NCU, a CCI subindex score between 0 and 100 indicates pessimism, while scores between 100 and 200 reflect optimism. In August, none of the factors reached optimistic levels, the university said.

The university's August CCI survey collected 3,135 responses from Taiwanese consumers aged 20 and older. It has a 95 percent confidence level with a margin of error of plus or minus 2 percentage points.

Also in August, a separate NCU survey conducted with Taiwan Realty showed the home-buying index fell 1.75 points month-on-month to 92.73, its lowest level in five years.