Consumer confidence hits 3-year low in March

Taipei, March 27 (CNA) Taiwan's consumer confidence index (CCI) fell sharply in March to the lowest level in more than three years, as concerns over inflation amid Middle East tensions weighed on sentiment, according to a monthly survey released Friday by National Central University (NCU).

The March CCI dropped 4.28 points to 62.3 from a month earlier, marking a second consecutive monthly decline. All six sub-indexes -- covering prices, family finances, economic outlook, employment, stock investment and durable goods purchases -- fell.

Dachrahn Wu (吳大任), director of NCU's Research Center for Taiwan Economic Development, said the ongoing conflict in the Middle East has disrupted energy supplies and could trigger inflation, with the negative impact on consumer sentiment unlikely to ease in the short term.

Rising global oil prices may push up inflation and household expenses, dampening consumption and potentially impacting business revenues and the labor market if the situation persists, Wu added.

He noted that while governments often intervene to stabilize prices, such as capping fuel and electricity costs, these measures tend to delay rather than resolve inflationary pressures, citing similar developments during the ongoing Russia-Ukraine war.

Among the sub-indexes, sentiment on stock investments over the next six months saw the steepest drop, falling 5.58 points to 22.88, followed by the outlook on prices, which dropped 4.71 points to 32.4.

The survey was conducted from March 18-21, collecting 3,177 valid responses from people aged 20 and above across Taiwan, with a margin of error of plus or minus 2 percentage points.