Cosumer confidence rebounds in November

Taipei, Nov. 27 (CNA) Taiwan's consumer confidence index (CCI) improved in November, with five of its six sub-indicators rising from October, said National Central University's Research Center for Taiwan Economic Development on Thursday.

According to a survey conducted by the center, the index rose 0.69 points to 64.65 in November, with consumer prices, domestic economic climate, durable goods purchases, employment prospects and family finances indexes all moving up.

The stock market index was the only subindex that saw a drop, according to the survey.

Dachrahn Wu (吳大任), director of the research center, told reporters that the market had been pessimistic about the economy since U.S. President Donald Trump announced reciprocal tariffs in April.

However, sentiment has shifted to cautious optimism as the impacts have so far been smaller than expected, amid the possibility that annual economic growth could exceed 6 percent in 2025.

Wu noted that the index for durable goods purchases saw the largest increase, rising 4.63 points to 97. Meanwhile, the home-buying index compiled by the university and Taiwan Realty also climbed 3.84 points to 94.26.

The data indicate a rebound in real estate confidence, as Taiwan's solid economic performance eased housing-market concerns about the potential impact of tariffs on the economy, he said.

Regarding the stock market index, which recorded a sharp decline for the second consecutive month by 9.5 to 27.02, Wu suggested that the drop was due to the close synchronization between Taiwan's market and the U.S. stock market.

He said that weakening U.S. household spending power, low consumer confidence, and questions surrounding a possible "AI bubble" have all weighed on investor sentiment.

Wu added that the survey asked participants whether "the next six months would be a good time to invest," and the low score may reflect their reluctance to buy at high levels, given that the TWSE Capitalization Weighted Stock Index was already near peak, rather than a lack of confidence.

Wu said that the CCI has hovered around 62-65 in the past few months, possibly due to cautious sentiments amid tariff concerns.

Prospects now hinge on the outcome of tariff negotiations with the United States -- specifically, how much Taiwan will be expected to invest there, and what tariff levels will be applied to semiconductors, he said.

The CCI survey collected 3,138 valid responses from Taiwanese consumers aged 20 and older between Nov. 18-21. It has a 95 percent confidence level with a margin of error of plus or minus 2 percentage points.