Consumer confidence picked up a little this month, as people showed more interest in purchasing durable goods in the coming six months on the expectation that housing prices would become more reasonable due to policy measures, a survey by National Central University showed yesterday.
The consumer confidence index was 63.67, up 0.49 points from last month, with five readings gaining in value and the subindex on inflation deteriorating, the monthly survey found.
The confidence reading on purchases of durable goods — mainly real estate and vehicles — advanced 1.65 points to 110 after interest rate hikes and regulations prevented housing price hikes and slowed transactions, said Dachrahn Wu (吳大任), director of the university’s Research Center for Taiwan Economic Development, which conducted the survey.
Photo: Hsu Tzu-ling, Taipei Times
Confidence scores of 100 or more suggest optimism, while scores below the threshold indicate pessimism.
Declines in transactions usually usher in price corrections, driving people with real demand to determine that it is time to join the market, Wu said.
Confidence in durable goods remained resilient despite the COVID-19 pandemic and interest rate hikes, in line with Taiwanese people’s passion for owning houses, the survey said.
The measures on the outlook for GDP growth, household income and employment all gained 1.2 points to 80.5, 75.2 and 65.1 respectively, signifying a moderate recovery in sentiment, despite their overall weakness, it said.
Wu said Taiwan’s exports have fared worse than expected, meriting a conservative economic outlook.
The subindex on consumer price levels shed 2.45 points to 24.4, reflecting widespread discontent with inflation, the survey said.
The poor inflation reading has much to do with evident price increases for pork, chicken and other food items, Wu said, adding that the government’s increase in electricity charges in April helped deepen unease.
At the same time, the effect of rent increases has not yet hit as landlords have had to delay rent hikes until after current leasing contracts expire, he said.
Wu said he was not particularly worried about inflationary pressures, which would ease in the second half of the year, in line with international energy and raw material price declines.
The biggest challenge is the poor visibility of Taiwan’s exports amid global economic uncertainty, he said.
The survey was conducted between May 18 and 21, with 2,922 adults interviewed by telephone.
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