Taiwanese this month turned less confident about the nation’s economic outlook, stock investments and the purchase of big-ticket items as COVID-19 outbreaks linger and geopolitical tensions escalate, a survey by Cathay Financial Holding Co (國泰金控) showed yesterday.
The monthly survey found that 36 percent of respondents had an optimistic outlook about the nation’s economy in the coming six months, while 33.3 percent believed the economy would deteriorate.
The narrowing gap between the optimists and pessimists came as intensifying military tensions between Russia and Ukraine jolt global markets and deepen inflation concerns, Taiwan’s largest financial service provider by capitalization said.
Photo: CNA
Russia is the world’s third-largest oil producer with an output of more than 11 million barrels per day and the threat of a military conflict with Ukraine has pushed up crude oil prices.
The poll showed that 85.4 percent of respondents believe consumer prices would climb higher, while 92.9 percent said prices have already increased from six months ago.
Nearly 76 percent expect prices of daily necessities to rise at least 6 percent, the survey said after polling 19,523 people online from Feb. 1 to 7.
About 34 percent believe that finding a job would become more difficult in the coming six months, compared with 21.4 percent who expect an improvement in the job market, the survey said.
Only 24 percent of respondents expect an increase in their income, even though the government and a considerable number of companies have announced pay hikes, it said.
Thirty-two percent said they would cut back on purchases of durable goods and 26.9 percent voiced plans to reduce consumption of big-ticket items, the survey found.
About 45 percent said there be would no change either way.
A slight majority, or 50.2 percent, said they would stay put with their investment portfolios, while 32.1 percent intend to increase stakes in local firms and 17.7 percent plan to reduce positions, the survey showed.
The latest figures represent a noticeable retreat in risk appetite from last month, which likely has to do with corrections in global technology shares ahead of expected monetary tightening by major central banks, Cathay Financial said.
The US Federal Reserve has signaled plans to raise interest rates next month at the earliest to curb inflation. Peers elsewhere might follow suit for similar reasons.
About 30 percent of respondents said the TAIEX would trade between 17,000 and 18,500 points in the first half of this year.
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