CCI stops falling streak to rise in August

Taipei, Taiwan's consumer confidence index (CCI) stopped a four-month falling streak in August, thanks mainly to a stable stock market that has maintained over the 10,000 point-mark level since May 23, 2017, according to a survey released by National Central University (NCU) Monday.

The CCI for August rose 0.18 points to hit 82.56 -- the first growth since April -- the results of the survey made public by NCU's Research Center for Taiwan Economic Development (RCTED) show.

RCTED Director Dachrahn Wu (???), however, said the slight improvement is not obvious enough to judge that the local consumer confidence has recovered, given that it would need an increase of at least 2 points to be viewed as a significant improvement.

Apart from the confidence that people have in consumer prices, CCI comprises five other sub-indexes that reflect the public's confidence in employment, family finances, local economic climate, the stock market and the possible purchase of durable goods over the next six months.

For August, the sub-index for the possible purchase of durable goods is the only one that fell, dropping 0.15 points from July to 89.75.

Despite a continuing trade war between the United States and Taiwan, the sub-index for the stock market gained 0.4 points to 93.7, thanks to a stable stock market.

The sub-index for family finances, which is the key indicator gauging local consumer confidence, added only 0.05 points to 85.9 last month -- the second-lowest this year.

The implementation of the reformed pension system for military retirees and retired public school teachers and government officials from July 1 will surely have an adverse effect because of reduced incomes, which will also dampen consumer confidence, Wu said.

According to NCU, a sub-index score of between 0 and 100 indicates pessimism, while a score of between 100 and 200 indicates optimism.

The random telephone survey was carried out Aug. 19-23. It collected 2,737 valid samples from adults aged over 20 and had a margin of error of plus or minus 2.0 percentage points.

Source: Focus Taiwan News Channel