Taiwan's consumer confidence hits 4-month high

Taipei, Oct. 4 (CNA) Consumer confidence in Taiwan rose to a four-month high in September due to the booming stock market, although sentiment remained weighed down by uncertainty over U.S. tariff policies, according to National Central University (NCU).

Citing a survey conducted Sept. 18-21, NCU said the September consumer confidence index (CCI) rose 1.38 points from a month earlier to 64.69, the highest since May, when it stood at 64.93.

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

Dachrahn Wu (吳大任), director of the NCU Research Center for Taiwan Economic Development, said the equity market benefited from strong enthusiasm for artificial intelligence development, with contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) leading the rally as Taiwan plays a major role in the global AI supply chain.

As a result, the stock market subindex rose 20.48 points to 51.68 in September, the largest increase among the six factors and the main driver of the overall CCI rise that month, according to the survey.

The other five subindexes weakened in September. The durable goods purchase subindex fell 3.83 points to 90.7, the steepest drop among the five.

Furthermore, the economic climate subindex fell 2.99 points to 76.18; family finances dropped 2.61 to 72.54; employment slipped 2.05 to 67.07; and consumer prices edged down 0.77 to 29.95.

Wu said a potential U.S. semiconductor tariff and Washington's proposal for a "50-50" split in semiconductor production, reportedly raised by U.S. Commerce Secretary Howard Lutnick, could affect Taiwan's semiconductor sector.

Lutnick said in a NewsNation interview released Sunday that "the conversation we've had with Taiwan [is] that it's vital for you to have us [the U.S.] produce 50 percent."

According to NCU, subindex scores between 0 and 100 indicate pessimism, while those between 100 and 200 reflect optimism. In September, none of the factors reached optimistic levels, the university said.

Also in September, the home-buying index compiled by NCU and Taiwan Realty fell 3.79 points month-on-month to 88.94, its lowest level in more than five years.

The university's September CCI survey collected 3,125 valid 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.