Confidence in local economy improves in January: Poll

Taipei, Jan. 20 (CNA) Confidence in Taiwan's economy improved in January with the latest government data indicating the local economy has turned warmer, a survey released by Cathay Financial Holding Co. showed Tuesday.

Citing a survey conducted from Jan. 1-7, Cathay Financial, the largest financial holding firm in Taiwan by total assets, showed 34.4 percent of respondents said the economy improved in January, while 32.4 percent believed it deteriorated.

These results translated into a current-month economic optimism index of 2.0 in January, up from minus 7.3 in December.

In addition, the six-month economic outlook index also improved, rising from minus 6.9 in December to minus 0.1 in January.

Cathay Financial said the improvement in confidence came as the National Development Council's (NDC) November economic monitoring data showed the local economy flashed a warming "yellow-red" light indicating it is closer to "overheating" conditions in the current AI boom.

Cathay Financial said the index assessing willingness to buy big-ticket items rose from 10.0 in December to 11.7 in January, while the index evaluating willingness to buy durable goods also rose from minus 12.7 to minus 9.6.

The survey found the optimism index toward the local stock market rose from 25.1 in December to 37 in January on the back of a rate cut cycle by the U.S. Federal Reserve as well as expectations of higher earnings posted by listed firms, while the index gauging willingness to take risks also rose from 18.1 to 23.9.

In the January survey, respondents pegged Taiwan's 2026 economic growth at 3.06 percent on average, with 57 percent of respondents saying they expected annual growth to top 3 percent, the survey found.

The poll also found respondents expected growth in the local consumer price index (CPI) to reach 2.17 percent in 2026, while about 52 percent anticipated the CPI would average over 2 percent for the year, above the alert level set by the central bank.

The survey collected 14,917 valid online questionnaires from clients of Cathay Life Insurance and Cathay United Bank, which are wholly owned by Cathay Financial.